CBEC in its latest notification has declared that the rate of composition tax will now stand at 0.5% with effect from 1 January 2018. This will affect people belonging to the category of manufacturers and suppliers.
Earlier under GST, the rate of composition tax was 1.0%. The same has been reduced by 50% in the current year. For the purpose of determining the status of a manufacturer or supplier, a tax payer must be involved in production of goods or services. The scope includes any article of human consumption other than alcohol.
For detailed information, please check the official notification here.
CBEC Central Tax Notification No. 1/2018 Composition Tax for Manufactures/Traders Dated 01-01-2018 – Download Here
CBEC UT Tax Notification No.1/2018 Composition Tax for Manufactures/Traders Dated 01-01-2018 – Download Here