Taxpayers exceeding exemption limits can choose compounding scheme, paying fixed rate taxes without ITC benefits.

Taxpayers who exceed the threshold exemption limit can opt for a compounding scheme, requiring them to pay taxes at a fixed rate without input tax credit (ITC) benefits. These taxpayers must file a simplified quarterly return (GSTR-4), indicating the total supply value and tax paid at the compounding rate. They must also provide invoice-level purchase information, auto-drafted from suppliers' data, and details of imported goods and services. Compounding taxpayers can export supplies and are permitted to purchase only tax-paid supplies, including from unregistered suppliers, on a reverse charge basis. The GST law outlines eligibility and provisions for these transactions.

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