Composition levy option limits eligibility and denies input tax credit, with penalties for ineligible claimants. Composition levy allows a registered person below the turnover threshold to opt to pay a prescribed fixed amount instead of regular tax at capped rates, subject to prescribed conditions and a possible government-notified higher threshold. Eligibility excludes inter-State supplies, supplies through certain e-commerce operators, supplies of non-taxable goods, most services, and notified manufacturers; joint PAN registrations must all opt. The option lapses on exceeding turnover limits; composition taxpayers cannot collect tax or claim input tax credit. Improper use attracts tax determination and penalties under the Act.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Composition levy option limits eligibility and denies input tax credit, with penalties for ineligible claimants.
Composition levy allows a registered person below the turnover threshold to opt to pay a prescribed fixed amount instead of regular tax at capped rates, subject to prescribed conditions and a possible government-notified higher threshold. Eligibility excludes inter-State supplies, supplies through certain e-commerce operators, supplies of non-taxable goods, most services, and notified manufacturers; joint PAN registrations must all opt. The option lapses on exceeding turnover limits; composition taxpayers cannot collect tax or claim input tax credit. Improper use attracts tax determination and penalties under the Act.
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