Who are the persons not eligible for composition scheme?

 Who are the persons not eligible for composition scheme?


             Following persons are not allowed to select for the composition scheme:

a) a casual taxable person or a non-resident taxable person;

b) suppliers whose aggregate turnover in the preceding financial year crossed Rs. 75 lakhs;

c) supplier who has purchased any goods or services from unregistered supplier unless he has paid GST on such goods or services on reverse charge basis;

d) supplier of services, other than restaurant service;

 e) persons supplying goods which are not taxable under GST law;

 f) persons making any inter-State outward supplies of goods;

 g) suppliers making any supply of goods through an electronic commerce operator who is required to collect tax at source under section 52; and

 h) a manufacturer of following goods:


Classification (Tariff item/Chapter)



2105 00 00

Ice cream and other edible ice, whether or not containing cocoa


2106 90 20

Pan masala



Tobacco and manufactured tobacco substitutes


Note: There is no restriction on procuring goods from inter-state suppliers by persons opting for the composition scheme.

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