Composition scheme: suppliers cannot make inter State outward supplies to SEZ while remaining in the scheme.
Supplies from the domestic tariff area to an SEZ are treated as inter State supplies, and Rule 5/Section 10 conditions for the composition levy prohibit a composition taxpayer from making inter State outward supplies; therefore a person paying tax under the composition scheme cannot make outward supplies of goods to an SEZ while remaining in the scheme.

Composition scheme eligibility denied where stock on appointed day was purchased inter state, imported, or received from outside State.
Persons below the turnover threshold who hold stock on the appointed day cannot opt for the composition scheme if that stock was purchased inter state, imported, or received from an out of State branch, agent or principal; possession of such goods on the appointed day disqualifies a registered person from the composition levy.

Composition scheme eligibility barred for casual and non-resident taxable persons; cannot claim composition as casual dealer.
A taxpayer acting as a casual taxable person or a non-resident taxable person is expressly excluded from the composition levy; therefore casual dealers and non-resident taxable persons cannot avail the composition scheme while operating in that capacity.

Job worker treated as service under Schedule entry - excluded from composition scheme even if activity amounts to manufacture.
A person undertaking treatment or process on another's goods is classified as a service provider under the statutory definition of job work and the Schedule entry treating such treatment as a supply of services; therefore, even if the activity amounts to manufacture, the nature of supply remains a service and the job worker is excluded from the composition scheme.

Composition scheme eligibility: service providers generally excluded, restaurant food service providers allowed; works contractors ineligible.
Composition scheme excludes service providers generally, so a works contractor is ineligible; however, supply of food or drink (excluding alcoholic liquor) provided as a service for consideration is carved out as an exception, permitting restaurant-style vendors to avail composition benefits under the composition levy conditions and restrictions.

Composition scheme eligibility restricted for certain manufacturers; ice cream, pan masala and tobacco products excluded from composition benefit.
The Composition Scheme allows manufacturers and traders to opt for a simplified levy instead of regular GST, but the government may notify exclusions. Manufacturers of ice cream and other edible ice, pan masala, and tobacco and manufactured tobacco substitutes are explicitly excluded from eligibility to avail the composition benefit.