Composition scheme in GST: simplified turnover-based tax option with eligibility limits, excluded supplies, and procedural conditions.

The Composition Scheme under section 10 allows eligible small taxpayers to pay a fixed percentage of gross turnover as tax, with specified category rates and territorial threshold limits. Service suppliers are generally excluded except food suppliers; notified manufacturers of certain goods (e.g., edible ice cream, pan masala, tobacco) cannot opt in. Restrictions include prohibition on inter-state supplies, supplies through e-commerce operators required to collect tax, and supplies of exempt goods. The option is voluntary but lapses on exceeding the turnover threshold; taxpayers must pay reverse charge on procurement from unregistered persons and issue a Bill of Supply.

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