Turnover limit for Composition scheme under GST Law


The GST regime has brought in many changes along with the following:


•Increase in the number of GST returns

•Payment of tax on a monthly basis

•Small and new taxpayers will find it difficult to comply with so many rules.


Hence, the government has introduced the concept of Composition Scheme. Composition Scheme is a simple and easy scheme under GST for taxpayers. Small taxpayers can get rid of tedious GST formalities and pay GST at a fixed rate of turnover.


As per Section 10 of CGST Act, 2017 : A registered person, whose aggregate turnover in the preceding financial year did not exceed fifty lakh rupees, may opt to pay, in lieu of the tax payable by him under sub-section (1) of section 9, an amount of tax calculated at such rate as may be prescribed.


Initially Section 10 of the CGST Act, 2017 provides the limit of turnover of Rs. 50 lakh for opting composition levy. However, the said limit can be increased up to Rs. 1.50 Crore with the recommendations of GST Council as per the first proviso to Section 10(1). With the use of this power the turnover limit has been increased as follows:


  1. from Rs. 50 lakhs to Rs. 75 Lakhs (vide N.N. 08/2017-Central Tax),

  2. further increased from Rs. 75 Lakhs to Rs. 1 Crore (vide N.N. 46/2017-Central Tax)

  3. and finally increased from 1 Crore to Rs. 1.50 Crore (vide N.N. 14/2019-Central Tax)


At present, a registered person having aggregate turnover up to Rs. 1.50 Crore in preceding financial year can opt composition levy under GST Law.

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