# Rates of Tax under Composition Levy
## Goods — Section 10(1) [Rule 7]
| Category of registered person | Rate (Total CGST + SGST/UTGST) | Base |
|---|---|---|
| Manufacturers (other than notified goods*) | 1% (0.5% + 0.5%) | Turnover in State/UT |
| Restaurant service (para 6(b) of Schedule II) | 5% (2.5% + 2.5%) | Turnover in State/UT |
| Any other supplier eligible u/s 10 | 1% (0.5% + 0.5%) | Turnover of taxable supplies of goods & services in State/UT |
*Notified goods (excluded from manufacturing composition): ice cream, pan masala, tobacco, aerated waters, fly ash bricks/aggregate/blocks, bricks of fossil meals or similar siliceous earths, building bricks, earthen or roofing tiles.
## Services — Section 10(2A)
- Effective rate: 6% (3% CGST + 3% SGST/UTGST)
- Base: Turnover of supplies of goods & services in State/UT.
## Critical distinction — Eligibility base vs Tax base
| Purpose | Use |
|---|---|
| Eligibility to opt | Aggregate turnover of preceding FY (PAN-India) |
| Tax payment | Turnover in State/UT for current FY |
For the third category of goods, tax is paid only on taxable supplies (exempt supplies don't bear composition tax).