Central Board of Indirect Taxes and Customs (CBIC) has issued Notification No. 50/2020 – Central Tax dated 24th June, 2020 to further amend Central Goods and Services Tax Rules, 2017 which shall come into force from 1st day of April, 2020 to substitute the table under Rule 7 of CGST Rules, 2017 relating to “Rate of tax of the Composition levy” for the category of registered persons eligible for composition levy under section 10 of CGST Act, 2017 has been substituted as follows:
| Sl No | Section under which composition levy is opted | Category of registered persons | Rate of tax | Amendment made in the Table |
| (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 of the turnover in the State or Union territory | Have inserted the Section reference in Column (1A) under which Composition levy is opted by the taxpayer. Accordingly, the registered persons who are engaged only in supply of goods are eligible. |
| 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 cent. 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 per cent. of the turnover of taxable supplies of goods and services in the State or Union territory.’’ | A new insertion has been made in the existing table to provide the rate of tax for registered persons not eligible under the composition levy under Subsections (1) and (2) of Section 10, but eligible to opt to pay tax under sub-section (2A), of section 10 i.e. registered person who are engaged in the supply of both goods and services and whose aggregate turnover in the preceding financial year did not exceed fifty lakh rupees. |
For further details please refer the attached document.
Source: Central Board of Indirect Taxes & Customs
