TaxTMI 
TaxTMI 
Composition scheme
13 Aug 2017 
5 Replies 
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Composition scheme eligibility limited by nature of supplies and interstate/e-commerce restrictions, with turnover-based lapse and no input credit.
Eligibility for the composition scheme requires that the taxable person not supply services except certain restaurant/food services, not supply goods that are non-taxable, not make inter-State outward supplies, not use e-commerce operators required to collect TCS, and not be a manufacturer of notified goods; the option lapses if aggregate turnover exceeds the statutory limit, opt-in is by all registrants sharing a PAN, and a composition dealer may not collect tax or claim input tax credit and faces tax determination and penalties if ineligible. (AI Summary)
Eligibility for the composition scheme requires that the taxable person not supply services except certain restaurant/food services, not supply goods that are non-taxable, not make inter-State outward supplies, not use e-commerce operators required to collect TCS, and not be a manufacturer of notified goods; the option lapses if aggregate turnover exceeds the statutory limit, opt-in is by all registrants sharing a PAN, and a composition dealer may not collect tax or claim input tax credit and faces tax determination and penalties if ineligible. (AI Summary)
A person having shopand selling few products are nontaxable and some taxable. whether he can opt composition scheme.previous financial year Turnover is ₹ 35 Lakhs.