Central Goods and Services Tax (Seventh Amendment) Rules, 2020

Last updated: 25 June 2020

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The Central Goods and Services Tax (Seventh Amendment) Rules, 2020, have been issued, introducing changes to the composition levy rates. These amendments, effective from the first day of April 2020, modify rule 7 of the principal CGST Rules, 2017. The updated table specifies new tax rates for manufacturers, suppliers of specific services, and other eligible suppliers opting for the composition levy, as well as for those under sub-section (2A) of section 10.

Ministry of Finance
(Department Of Revenue)
(Central Board of Indirect Taxes and Customs)

Notification No. 50/2020-Central Tax

New Delhi, the 24th June, 2020

G.S.R. 403(E).- In exercise of the powers conferred by section 164 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following rules further to amend the Central Goods and Services Tax Rules, 2017, namely:‑

1. (1) These rules may be called the Central Goods and Services Tax (Seventh Amendment) Rules, 2020.

(2) They shall come into force with effect from the or’ day of April, 2020.

2. In the Central Goods and Services Tax Rules, 2017, in rule 7, for the Table, the following Table shall be substituted, namely:-

“TABLE

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 han manufacturers of such goods as may be notified by the Government	half per cent. 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 per cent. 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 subsections (1) and (2) of section 10	half per 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 sub-sections (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.’

[F. No. CBEC-20/06/09/2019-GST]

PRAMOD KUMAR, Director

Note: The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide notification No. 3/2017-Central Tax, dated the 19th June, 2017, published vide number G.S.R. 610(E), dated the 19th June, 2017 and last amended vide notification No. 48/2020 – Central Tax, dated the 19th June, 2020 published vide number G.S.R. 394 (E), dated the 19th June, 2020.

FAQ :

These are amendments to the Central Goods and Services Tax Rules, 2017, which introduce changes to the composition levy rates.

The rules come into force with effect from the first day of April, 2020.

Rule 7 of the Central Goods and Services Tax Rules, 2017, has been amended, specifically the table related to the composition levy.

Manufacturers, other than those producing notified goods, will pay half per cent of their turnover in the State or Union territory.

These suppliers will pay two and a half per cent of the turnover in the State or Union territory.

Registered persons eligible under sub-section (2A) of section 10 will pay three per cent of the turnover of taxable supplies of goods and services in the State or Union territory.

Notification No : 50/2020-Central Tax
Source : https://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-50-central-tax-english-2020.pdf

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