Composition Scheme Under GST
- Section 10 stipulates that a Registered Person, whose turnover in the preceding F.Y. does not exceed ₹ 50 lakh, may opt to pay an amount calculated at the prescribed rates during the current F.Y. in lieu of the tax payable by him.
However, the Government may, by notification, increase the said limit of ₹ 50 lakh to such higher amount, not exceeding ₹ 1 crore, as may be recommended by the Council.
- The GST Council had recommended an increase in the turnover limit for composition levy for CGST & SGST purposes from ₹ 50 lakh to ₹ 75 lakh for all eligible registered person in the meeting held on 11th June 2017.
- Further, the GST Council has recommended that the turnover limit for composition levy shall be ₹ 50 lakh in respect of 9 of the special category states in the meeting held on 18th June 2017.
List of special category states whose limit is ₹ 50 lakh under composition levy
- Arunachal Pradesh
- Himachal Pradesh, etc
The composition rates prescribed as follows
|S. No||Category of registered person||Rates|
|1||Manufacturers, other than manufacturers of such goods as may be notified by Government||1%|
|2||Suppliers ( foods or any other article for human consumption or any drink(other than alcoholic liquor for human consumption)||2.5%|
|3||Any other supplier||0.5%|
NOT ELIGIBLE FOR COMPOSITION LEVY
- Supplier of services other than the supplier of food articles.
- Those Supplier of goods which are not taxable under CGST Act/SGST Act/ UTGST Act.
- Any Supplier of inter-state outward supplies of goods.
- Person supplying goods through an electronic commerce operator
- Manufacturer of certain goods as may be notified by GST Council.