Notification No. 50/2020 – Central Tax, dated 24.06.2020-simple text 

Vide Notification No.50/2020-Central Tax, dated 24.06.2020, substitute new table in rule 7 of CGST Rules, 2017 has been done retrospectively from 01.04.2020. For the taxpayers, simple text is as under in easy manner:

Rate of tax for the composition taxpayer is as under:

S.No. Category of taxpayer under composition scheme Rate of tax
1 Manufacturer other than manufacture engaged in supply of following :

2105 00 00 :- Ice cream and other edible ice, whether or not containing cocoa

2106 90 20 :- Pan masala

24 :- All goods, i.e. Tobacco and manufactured tobacco substitutes

0.5 + 0.5 = 1%
2 Restaurant Service 2.5 + 2.5 = 5%
3 Traders (Other Suppliers) 0.5 + 0.5 = 1%
4 Supplier of service or mixed supplier of goods and services 3 + 3 = 6%

Note :

1-This entry was not mentioned in the table earlier in rule 7 of CGST Rules, 2017.

2-The option of supplier of service was provided vide Not.No.2/2019-Central Tax (Rate), dated 07.03.2019 and was effective from 01.04.2019, but table was not updated in CGST Rules, 2017. Now the table has been substituted with new table and rates have been mentioned. 

In the CGST Rules, 2017, in rule 7, table has been updated with all the Rates of taxes for the composition taxpayers now.

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March 2021