Changes related to Composition levy in the Revised GST Law

Tax rate of composition scheme shall not be less than 2.5% in case of a manufacturer and 1% in any other case of the turnover in a State during year. (Earlier tax rate should not be less than 1% was mentioned)

No composition levy for persons -

  • who is engaged in the supply of services; or
  • who makes any supply of goods which are not leviable to tax
  • who makes any inter State outward supplies of goods
  • who makes any supply of goods through an electronic commerce operator who is required to collect tax at source u/s 56
  • who is a manufacturer as notified on recommendation of Council

(Earlier restriction was only for inter - state supplies)