{"id":142,"date":"2019-04-08T09:36:29","date_gmt":"2019-04-08T09:36:29","guid":{"rendered":"http:\/\/raaas.com\/blog\/?p=142"},"modified":"2025-05-06T11:36:40","modified_gmt":"2025-05-06T06:06:40","slug":"increase-in-threshold-limit-of-turnover-for-composition-levy","status":"publish","type":"post","link":"https:\/\/raaas.com\/blog\/increase-in-threshold-limit-of-turnover-for-composition-levy\/","title":{"rendered":"Increase in Threshold limit of Turnover for Composition Levy"},"content":{"rendered":"

Government had increase threshold limit of Turnover for Composition levy from Rs.1 Cr to 1.5 Cr wide
\nnotification no.\u201014\/2019\u2010Central Tax dated 7th March, 2019. This notification will come into effect
\nfrom 1st April, 2019.Now, any person having turnover up to Rs. 1.5 Cr. Can opt for paying GST under<\/a>
\ncomposition Scheme. Let us discuss provisions related to registration under composition scheme
\nunder GST.<\/p>\n

What is Composition Scheme? Who can opt for Composition scheme?<\/strong>
\nA registered person under GST regime, if his aggregate Turnover does not exceed Rs.1.5 Cr.* in<\/strong>
\npreceding Financial year<\/strong> may opt to pay tax in lieu of tax payable by him under normal registration, a
\nfixed amount of tax calculated on the basis of turnover. Basically this benefit is for small taxpayer who
\ncan avoid tax formalities by paying a tax at fixed rate of turnover.<\/p>\n

*Earlier this threshold limit was Rs.1.5 crore which has been raised wide notification no.\u201014\/2019\u2010<\/strong>
\ncentral tax dated 7th March, 2019 which will be effective from 1st April, 2019.<\/strong>
\nBut the threshold limit for registered person in the following states shall be Rs.75 Lakhs<\/strong>:\u2010<\/p>\n

    \n
  1. Arunachal Pradesh,<\/li>\n
  2. Manipur,<\/li>\n
  3. Meghalaya,<\/li>\n
  4. Mizoram,<\/li>\n
  5. Nagaland,<\/li>\n
  6. Sikkim,<\/li>\n
  7. Tripura,<\/li>\n
  8. Uttarakhand<\/li>\n<\/ol>\n

    Who cannot opt for Registration under composition Levy scheme?<\/strong><\/p>\n