To reduce compliance burdens and facilitate ease of business for small taxpayers, Composition Levy has been introduced by the GST law. Under this scheme, a taxpayer is required to file quarterly returns and pay a specified percentage of turnover as tax to the government, instead of paying tax on every invoice.
As per the GST law, a taxpayer whose turnover does not exceed Rs. 1.5 crores (and Rs. 75 lakhs in special category states except Jammu & Kashmir and Uttarakhand) is eligible to opt for this scheme.