Section 10 - Composition levy.

Composition levy option for small registered persons restricts tax collection and input tax credit, with eligibility conditions enforced.

A registered person below the statutory turnover limit may opt for a composition levy, paying a prescribed alternative amount instead of normal tax, subject to category-based rate caps and prescribed conditions. Ineligible persons include those making certain services, non-leviable supplies, inter-State outward supplies, supplies via e-commerce operators required to collect tax at source, notified manufacturers, and registrants sharing a PAN unless all opt. The option lapses on exceeding the turnover threshold. Composition taxpayers may not collect tax nor claim input tax credit; wrongful reliance attracts tax and penalty with assessment under the Ordinance.