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As at 10 November 2026, an eligible trader in Delhi opts for the composition levy under Section 10(1) of the CGST Act, 2017. At what rates is tax payable on its turnover of taxable supplies in Delhi?

Question and options

As at 10 November 2026, an eligible trader in Delhi opts for the composition levy under Section 10(1) of the CGST Act, 2017. At what rates is tax payable on its turnover of taxable supplies in Delhi?

  1. 2.5% CGST and 2.5% Delhi GST

  2. 0.5% CGST and 0.5% UTGST

  3. 0.5% CGST and 0.5% Delhi GST

  4. 1% CGST and 1% Delhi GST

Answer and explanation

Correct answer: C - 0.5% CGST and 0.5% Delhi GST

Rule 7 of the CGST Rules, 2017 sets central tax for a composition trader at half per cent of the turnover of taxable supplies in the State, with an equal amount of State tax. Delhi has a legislature, so it counts as a State under section 2(103) and levies tax under its own Delhi GST Act, not UTGST. The 2.5% pair is the restaurant rate.

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