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<h1>Composition scheme eligibility: small taxpayers may pay tax as a turnover percentage without ITC, with exclusions for inter state and e commerce supplies.</h1> Small taxpayers below the notified aggregate turnover threshold may opt for composition levy and pay tax as a percentage of turnover in a State without input tax credit; floor rates apply, composition taxpayers may not collect tax from customers, and taxpayers making inter state supplies or supplying through e commerce operators required to collect tax at source are ineligible.
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