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