FAQ on Composition levy

Q1. What is composition levy under GST?
Q2. What is the specified rate of composition levy?
Q3. What is the eligibility category for opting for composition levy? Which are the Special Category States in which the turnover limit for Composition Levy for Central tax and State tax purpose shall be Rs. 50 lakhs?
Q4. Who are the persons not eligible for composition scheme?
Q5. When will a person opting for composition levy pay tax?
Q6. A person availing composition scheme during a financial year crosses the turnover of Rs.75 lakhs/50 lakhs during the course of the year i.e. say he crosses the turnover of Rs.75 lakhs/50 lakhs in December? Will he be allowed to pay tax under composition scheme for the remainder of the year i.e. till 31st March?
Q7. How will the aggregate turnover be computed for the purpose of composition?
Q8. Can a person who has opted to pay tax under the composition scheme avail Input Tax Credit on his inward supplies?
Q9. Can a registered person, who purchases goods from a taxable person paying tax under the composition scheme, avail credit of tax paid on purchases made from the composition dealer?
Q10. Can a person paying tax under the composition scheme issue a tax invoice under GST?
Q11. Are monthly returns required to be filed by the person opting to pay tax under the composition scheme?
Q12. What are the basic information that need to be furnished in GSTR-4?
Q13. A person opting to pay tax under the composition scheme receives inputs/input services from an unregistered person. Will the composition taxpayer have to pay GST under reverse charge? If yes, in what manner?
Q14. What is the form in which an intimation for payment of tax under composition scheme needs to be made by the taxable person?
Q15. person registered under existing law (Central Excise/Service Tax/VAT) and who has been granted registration on a provisional basis wants to opt for composition scheme. How and when can he do that?
Q16. What are the other compliances which a provisionally registered person opting to pay tax under the composition levy need to make?
Q17. Can a person making application for fresh registration under GST opt for composition levy at the time of making application for registration?
Q18. Can the option to pay tax under composition levy be exercised at any time of the year?
Q19. Can a person who has already obtained registration, opt for payment under composition levy? If so, how?
Q20. What are the compliances from ITC reversal point of view that need to be made by a person opting for composition levy?
Q21. In case a person has registration in multiple states? Can he opt for payment of tax under composition levy only in one state and not in other state?
Q22. What is the effective date of composition levy?
Q23. What are the other conditions and restrictions subject to which a person is allowed to avail of composition scheme?
Q24. What is the validity of composition levy?
Q25. Can a person paying tax under composition levy, withdraw voluntarily from the scheme? If so, how?
Q26. What action can be taken by the proper officer for contravention of any provisions of composition levy and how?
Q27. In case the option to pay tax under composition levy is denied by the proper officer, can the person avail ITC on stock after denial?
Q28. Will withdrawal intimation in any one place be applicable to all places of business?
Q29. Can supplier of Services opt for composition levy?
Q30. What are the penal consequences if a person opts for the composition scheme in violation of the conditions?
Q31. Can a person paying tax under composition scheme make supplies of goods to SEZ?
Q32. A registered person has excess ITC of Rs 10, 000/- in his last VAT return for the period immediately preceding the appointed day. Under GST he opts for composition scheme. Can he carry forward the aforesaid excess ITC to GST?