Composition levy allows small registered persons to pay a prescribed flat rate instead of regular GST, subject to eligibility and conditions.

Composition levy allows a registered person below a prescribed aggregate turnover threshold to pay a prescribed flat rate instead of tax otherwise payable, subject to prescribed eligibility restrictions (including limits on services, non leviable supplies, inter State outward supplies, supplies via certain ecommerce operators, and notified excluded manufacturers). The option lapses when turnover exceeds the threshold; composition taxpayers must not collect tax or claim input tax credit, and ineligible use attracts tax and penalty with assessment provisions applying mutatis mutandis.

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