Composition levy permits simplified tax payment for small taxpayers with turnover below prescribed threshold, subject to specified eligibility conditions. Composition levy allows a registered person below the prescribed aggregate turnover threshold to opt to pay a prescribed fixed-rate amount instead of regular tax, subject to statutory rate limits and eligibility conditions. Eligibility excludes persons making certain service supplies, supplies not leviable to tax, inter-State outward supplies, supplies through e-commerce operators required to collect tax at source, and notified manufacturers; joint PAN-linked registrants must all opt together. The option lapses on turnover breach; composition taxpayers may not collect tax nor claim input tax credit; ineligible use attracts tax determination and penalty procedures.
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 permits simplified tax payment for small taxpayers with turnover below prescribed threshold, subject to specified eligibility conditions.
Composition levy allows a registered person below the prescribed aggregate turnover threshold to opt to pay a prescribed fixed-rate amount instead of regular tax, subject to statutory rate limits and eligibility conditions. Eligibility excludes persons making certain service supplies, supplies not leviable to tax, inter-State outward supplies, supplies through e-commerce operators required to collect tax at source, and notified manufacturers; joint PAN-linked registrants must all opt together. The option lapses on turnover breach; composition taxpayers may not collect tax nor claim input tax credit; ineligible use attracts tax determination and penalty procedures.
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