Composition Scheme - Who are not Eligible

5. Who are not Eligible for Composition Levy?
Persons engaged in
  • Supply of services (except restaurant, catering services).
  • Supply of non-GST goods.
  • Inter-State outward supplies of goods (he can make inter-state purchases).
  • Making supply of goods through an e-commerce operator who is required to collect tax at source.
  • Manufacture of such goods which goverment may notify. (Following goods have to be notified Ice cream and other edible ice, pan masala & tobacco and manufactured tobacco substitutes).
Conditions & restrictions
  • Should neither be a casual taxable person nor a non-resident taxable person.
  • Where a registered person opts for composition levy during transition, the goods held in stock on the appointed date have not been purchased Inter-State or imported from a place outside India or received from branch situated outside the State or from agent or principal outside the State.
  • The goods held in stock have not been purchased from an unregistered supplier & where purchased, he shall pay tax under reverse charge.
  • Not engaged in manufacture of goods as notified during preceeding financial year.
  • Mention the words "Composition Taxable Person,not eligible to collect tax on supplies" at the top of bill of supply issued.
  • Mention the words "Composition Taxable Person" on every notice or signboard displayed at prominent place at his place of business and at every additional place of business.