When aggregate turnover of business during financial year does not exceed Rs.1.5 Crore for goods (Rs.75 lacs for special category states) and Rs.50 lacs for services, it can avail benefit of composition scheme u/s 10 of GST Act. However, following business cannot opt for Composition Scheme.
- Business making inter-state sale of taxable goods cannot opt for composition scheme. However, business making inter-state sale of taxable services can opt for composition scheme
- Business selling non-taxable goods
E-commerce suppliers i.e. business selling goods through e-commerce operator
- Manufacturer of tobacco, pan-masala or ice-cream
- CTP i.e. Casual Taxable Person – person who occasionally sells goods or services from state where he does not have fixed place of business
- NRTP i.e. Non-Resident Taxable Person – person who occasionally sells goods or services from India and does not have fixed place of business in India