Composition levy permits eligible small taxpayers to discharge GST by paying a prescribed turnover-based amount instead of regular tax.

Composition levy permits a small registered person to pay a prescribed percentage of state turnover instead of regular tax, subject to an aggregate turnover ceiling and prescribed conditions. The option is available only to persons not engaged in specified excluded activities; the option lapses when turnover exceeds the ceiling. A composition taxpayer must not collect tax from recipients and is not entitled to input tax credit. If an ineligible person avails the option, tax and penalty provisions apply for determination of tax and penalty.

---

---

---