The CBIC vide Notification No. 50/2020 Central Tax Dated June 24, 2020, makes further amendments in the Central Goods and Services Tax Rules, 2017. In the Central Goods and Services Tax Rules, 2017, in rule 7 i.e. Rate of Tax of the Composition Levy, for the Table, the following Table shall be substituted, namely:-
|
Sl. No. |
Section under which composition levy is opted | Category of registered persons |
Rate of tax |
|
(1) |
(1A) | (2) |
(3) |
|
1. |
Sub-sections (1) and (2) of section 10 |
Manufacturers, other than manufacturers of such goods as may be notified by the Government |
Half percent (0.5%) of the Turnover in the State or Union Territory |
|
2. |
Sub-sections (1) and (2) of section 10 |
Suppliers making supplies referred to in clause (b) of paragraph 6 of Schedule II i.e. supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink (other than alcoholic liquor for human consumption), where such supply or service is for cash, deferred payment or other valuable consideration. |
Two and a half percent (2.5%) of the Turnover in the State or Union Territory |
|
3. |
Sub-sections (1) and (2) of section 10 |
Any other supplier eligible for composition levy under sub-sections (1) and (2) of section 10 |
Half percent (0.5%) of the Turnover of taxable supplies of goods and services in the State or Union Territory |
|
4. |
Sub-section (2A) of section 10 |
Registered persons not eligible under the composition levy under subsections (1) and (2), but eligible to opt to pay tax under sub-section (2A), of section 10 |
Three percent (3%) of the Turnover of taxable supplies of goods and services in the State or Union Territory.’’. |
Note: This Notification shall come into force with effect from April 01, 2020.
The Notification can be accessed at: https://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-50-central-tax-english-2020.pdf