Section 10 - Composition levy.

Composition levy option lets eligible small taxpayers pay a prescribed turnover based rate in lieu of GST under defined restrictions.

Composition levy allows a registered person below the small taxpayer turnover threshold to pay a prescribed percentage of turnover in the State instead of regular tax, with differentiated rates and subject to prescribed conditions. Eligibility excludes certain services, non leviable supplies, inter State outward supplies, supplies via e commerce operators required to collect tax at source, and notified manufacturers; joint PAN registrants must opt together. The option lapses on exceeding turnover limits, bars collection of tax from recipients and input tax credit, and ineligible use attracts assessment and penalty under the Act.