Provisions under Rule 7 of the CGST Rules, 2017 relating to “Tax Rate under Composition Levy”:
CGST Rule 7: Rate of tax of the Composition Levy (Chapter II: Composition Levy Rules) [*1]
The category of registered persons, eligible for composition levy under section 10 and the provisions of this Chapter, specified in column (2) of the Table below shall pay tax under section 10 at the rate specified in column (3) of the said Table: –
Table [*4]
| Sl. No. (1) | Section under which composition levy is opted (1A) | Category of registered persons (2) | Rate of tax (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 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 | two and a half percent 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 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 of the turnover of [*5] supplies of goods and services in the State or Union territory |
Notes (History of Amendments in Bare Text):
1. CGST Rule 7 introduced vide Notification 3/2017, effective 22/06/2017.
2. Amendments in Table from 01/01/2018 vide Notification 3/2018: [*4]
(a) at Sl. No. 1/ Column (3), the text ‘one percent’ substituted with the text ‘half percent of the turnover in the State or Union territory’;
(b) at Sl. No. 2/ Column (3), the text ‘two and a half percent’ substituted with the text ‘two and a half percent of the turnover in the State or Union territory’;
(c) at Sl. No. 3/ Column (3), the text ‘half percent’ substituted with the text ‘half percent of the turnover of taxable supplies of goods in the State or Union territory’.
3. At Sl. No. 3/ Column (3) of the Table, the text ‘goods’ substituted with the text ‘goods and services’ from 01/02/2019 vide Notification 3/2019. [*4]
4. Table substituted from 01/04/2020, vide Notification 50/2020. Table before substitution:
Table
| Sl. No. (1) | Category of registered persons (2) | Rate of tax (3) |
| 1 | Manufacturers, other than manufacturers of such goods as may be notified by the Government | half percent of the turnover in the State or Union territory [*2(a)] |
| 2 | Suppliers making supplies referred to in clause (b) of paragraph 6 of Schedule II | two and a half percent of the turnover in the State or Union territory [*2(b)] |
| 3 | Any other supplier eligible for composition levy under section 10 and the provisions of this Chapter | half percent of the turnover of taxable supplies of goods and services in the State or Union territory [*2(c)&3] |
5. In Table, at Sl. No. 4/ Column (3), the text “turnover of taxable” substituted with the text “turnover of” from 01/04/2020 vide Corrigendum to Notification 50/2020.
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