As at 10 November 2026, under Rule 7 of the CGST Rules, 2017, at what rate of central tax is an eligible manufacturer (other than of notified goods) liable under the composition levy of Section 10(1)?
Question and options
As at 10 November 2026, under Rule 7 of the CGST Rules, 2017, at what rate of central tax is an eligible manufacturer (other than of notified goods) liable under the composition levy of Section 10(1)?
0.5% of turnover in the State
3% of turnover in the State
2.5% of turnover in the State
1% of turnover in the State
Answer and explanation
Rule 7 of the CGST Rules, 2017 fixes central tax for an eligible manufacturer at half per cent of turnover in the State or Union territory, with an equal amount of State or Union territory tax. The 2.5% rate applies to restaurant services, 1% was the manufacturer's central rate before the 2018 amendment, and 3% is the central rate under the separate section 10(2A) scheme.
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