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.

Disclaimer: The contents of this article are for information purposes only and does not constitute an advice or a legal opinion and are personal views of the author. It is based upon relevant law and/or facts available at that point of time and prepared with due accuracy & reliability. Readers are requested to check and refer relevant provisions of statute, latest judicial pronouncements, circulars, clarifications etc before acting on the basis of the above write up.  The possibility of other views on the subject matter cannot be ruled out. By the use of the said information, you agree that Author / TaxGuru is not responsible or liable in any manner for the authenticity, accuracy, completeness, errors or any kind of omissions in this piece of information for any action taken thereof. This is not any kind of advertisement or solicitation of work by a professional.

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