- CBIC has issued Notification No. 50/2020 dated 24th June, 2020 which makes rules further to amend CGST Rules, 2017. These rules may be called as "Central Goods & Service Tax (Seventh Amednment) Rules, 2020. These rules shall come into force w.e.f. 01-04-2020.
- By this amendment, following rates of composition levy has been prescribed by the Government as below:
| Category of Registered Taxpayer |
Section under which |
Rate of Composition Tax |
| Manufacturers, other than manufacturers of notified goods | 10(1), 10(2) | 0.5% +0.5%= 1% |
| Suppliers making supplies referred to in clause (b) of paragraph-6 of Schedule-II:- Composite supply of goods being food or any other article for human consumption or any drink other than alcohlic liquor | 10(1), 10(2) | 2.5%+2.5% = 5% |
| Any other supplier of goods eligible for composition levy other than above 2 categories | 10(1), 10(2) | 0.5% + 0.5% = 1% |
| Registered persons not eligible under section 10(1), 10(2):- Bascially, those taxpayers who are providing services or mixed supplies are not covered under section 10(1) & 10(2). For such taxpayers, Section-10(2A) has been inserted | 10(2A) | 3% + 3% = 6% |
You may refer Notification at:- https://www.cbic.gov.in/resources/htdocs-cbec/gst/notfctn-50-central-tax-english-2020.pdf
