Chapter II
COMPOSITION RULES
7. Rate of tax of the composition levy.-
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 undersection 10 at the rate specified in column (3) of the said Table:-
| Sl. No. | Category of registered persons | Rate of tax |
| (1) | (2) | (3) |
| 1. | Manufacturers, other than manufacturers of such goods as may be notified by the Government | 1half per cent. of the turnover in the State or Union territory |
| 2. | Suppliers making supplies referred to in clause (b) of paragraph 6 of Schedule II | 2two and a half per cent. of the turnover in the State or Union territory |
| 3. | Any other supplier eligible for composition levy under section 10 and the provisions of this Chapter | 3half per cent. of the turnover of taxable supplies of goods in the State or Union territory |
Note:
1. Subsituted by Notification No. 3/2018 –Central Tax issued dated 23th January, 2018
(a) in Sl. No. 1, in column number (3), for the words “one per cent.”, the words “half per cent. of the turnover in the State or Union territory” shall be substituted;
2. Subsituted by Notification No. 3/2018 –Central Tax issued dated 23th January, 2018
(b) in Sl. No. 2, in column number (3), for the words “two and a half per cent.”, the words “two and a half per cent. of the turnover in the State or Union territory” shall be substituted;
3. Subsituted by Notification No. 3/2018 –Central Tax issued dated 23th January, 2018
(c) in Sl. No. 3, in column number (3), for the words “half per cent.”, the words “half per cent. of the turnover of taxable supplies of goods in the State or Union territory” shall be substituted;