Composition levy permits eligible small taxpayers to pay a simplified GST amount but bars tax collection and input credit. A composition levy allows eligible small registered persons to opt to pay a prescribed simplified amount instead of regular GST, subject to specified rates, eligibility exclusions (services except certain Schedule II supplies, non-taxable supplies, inter-State outward supplies, supplies through certain e-commerce operators, and notified manufacturers), and the requirement that registrants sharing a single PAN must opt collectively. The option lapses on exceeding the turnover threshold; composition taxpayers cannot collect tax from recipients or claim input tax credit; wrongful use attracts assessment and penalty procedures 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 permits eligible small taxpayers to pay a simplified GST amount but bars tax collection and input credit.
A composition levy allows eligible small registered persons to opt to pay a prescribed simplified amount instead of regular GST, subject to specified rates, eligibility exclusions (services except certain Schedule II supplies, non-taxable supplies, inter-State outward supplies, supplies through certain e-commerce operators, and notified manufacturers), and the requirement that registrants sharing a single PAN must opt collectively. The option lapses on exceeding the turnover threshold; composition taxpayers cannot collect tax from recipients or claim input tax credit; wrongful use attracts assessment and penalty procedures under the Act.
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