Composition levy: Registered small taxpayers may opt to pay a prescribed rate instead of GST, subject to eligibility rules. A composition levy allows a registered person below the prescribed turnover threshold to opt to pay a prescribed fixed rate instead of regular tax, subject to specified capped rates and Government-prescribed threshold limits. Eligibility excludes suppliers of certain services, tax-exempt goods, inter-state outward supplies, supplies via an electronic commerce operator required to collect tax at source, and notified manufacturers; persons sharing a Permanent Account Number must opt collectively. The option lapses on exceeding the turnover threshold, forbids collection of tax from recipients and input tax credit, and attracts assessment and penalty provisions if improperly availed.
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: Registered small taxpayers may opt to pay a prescribed rate instead of GST, subject to eligibility rules.
A composition levy allows a registered person below the prescribed turnover threshold to opt to pay a prescribed fixed rate instead of regular tax, subject to specified capped rates and Government-prescribed threshold limits. Eligibility excludes suppliers of certain services, tax-exempt goods, inter-state outward supplies, supplies via an electronic commerce operator required to collect tax at source, and notified manufacturers; persons sharing a Permanent Account Number must opt collectively. The option lapses on exceeding the turnover threshold, forbids collection of tax from recipients and input tax credit, and attracts assessment and penalty provisions if improperly availed.
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