Composition levy permits small registered persons to pay a prescribed turnover based tax instead of regular GST, subject to eligibility rules.

Composition levy allows a registered person below the prescribed turnover threshold to pay a prescribed percentage of turnover instead of regular tax, subject to conditions and restrictions; differing rates apply by supplier class. Eligible persons must not make certain services, non leviable supplies, inter State outward supplies, supplies via specified e commerce operators, or be notified manufacturers. The option lapses if turnover exceeds the threshold, bars collection of tax from recipients and input tax credit claims, and wrongful availing attracts tax determination and penalty provisions.

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