Eligibility criteria for Composition Scheme under GST

The taxpayers who are eligible to opt for Composition Scheme are as under:

  1. Normal taxpayers having aggregate turnover at PAN level upto Rs 1.5 crores in the previous financial year. If they opt for this scheme, they cannot avail ITC.
  2. In the following states, normal taxpayers having aggregate turnover computed at PAN level upto Rs 75 lakhs can opt for the composition scheme: Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Uttarakhand.
  3. The normal taxpayers supplying services and/or mixed supplies with aggregate turnover upto Rs 50 lakhs in the previous financial year.

The taxpayers who are ineligible to opt for Composition scheme:

  1. Suppliers of goods/services that don’t fall under the purview of taxability under GST Act.
  2. Suppliers having inter state outward supplies of goods/services.
  3. Taxpayers making supplies through e-commerce operators who are required to collect tax under GST.
  4. Manufacturers of notified goods- Ice cream and other edible ice, with or without cocoa; Pan Masala; Tobacco & tobacco substitutes; Aerated water.
  5. Casual Taxpayer
  6.  Person registered as Input Service Distributor (ISD)
  7. Non Resident Taxpayer
  8. Person registered as TDS deductor, TDS collector.

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