Composition tax option for registered suppliers applies to eligible outward supplies with bill of supply and no input tax credit. Composition-type state tax option is extended to registered persons making first supplies of goods or services or both up to an aggregate turnover of fifty lakh rupees in a financial year, subject to specified eligibility conditions. The registered person must pay state tax at three per cent on covered outward supplies, not collect tax from recipients, forego input tax credit, and issue a bill of supply with the prescribed endorsement instead of a tax invoice.