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What is Composition Levy scheme?

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What is Composition Levy scheme?

Expert Answer
Answered 05 Aug 2022
2291 views
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.

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