Composition scheme enables eligible small suppliers to pay reduced State tax while prohibiting collection and input tax credit. Composition scheme allows eligible small registered suppliers with aggregate turnover within the prescribed threshold in the preceding year to pay State tax at a notified reduced rate on intra State supplies from the start of the financial year, subject to exclusions (including certain goods and inter State supplies), prohibition on collecting tax from recipients, ineligibility for input tax credit, requirement to issue a bill of supply with specified wording, and continued liability for reverse charge on certain inward supplies; annexure exclusions are interpreted per the Customs Tariff First Schedule.