To help small businesses avoid the hassles of collecting GST, claiming input credit etc the
Model GST law has proposed a simpler levy. This levy is called Composition Levy.
Those with turnover of Rs 50 lakhs or less can opt for this levy. (Note that this is
Instead of collecting GST you will pay a certain % of levy. This levy or tax will be not less
than 1% of the turnover of the financial year. The government will announce the levy %
in due course.
This levy cannot be availed by those who make inter-state supply of goods/services. It
can only be availed by those who make intra-state supply of goods/services
This levy is linked to your PAN. So if you have opted it for a business with a particular
PAN, composition levy shall apply to all your businesses with the same PAN
No input credit shall be allowed to be claimed by you
GST or any other tax shall not be collected by you from the recipient of your supplies.
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