Section 10 - Composition levy.

Composition levy permits eligible small taxpayers to pay a prescribed substitute tax instead of regular GST, with strict eligibility rules.

The Act permits a registered person with aggregate turnover in the preceding financial year not exceeding fifty lakh rupees to opt to pay a prescribed fixed amount in lieu of regular tax, subject to prescribed rates and conditions. Eligibility excludes persons making certain services, non taxable supplies, inter State outward supplies, supplies through specified e commerce operators, and manufacturers of notified goods; the option lapses if turnover exceeds the threshold. Composition taxpayers cannot collect tax or claim input tax credit, and wrongful use of the scheme attracts assessment and penalty procedures under the Act.