Not all businesses are eligible to opt for the Composition Scheme under GST.
The following are the types of businesses that who cannot opt for the Composition Scheme in GST:
- Service providers: The Composition Scheme is only available to businesses that supply goods. Service providers, such as restaurants and caterers, are not eligible for the scheme.
- Inter-state sellers: The Composition Scheme is available only to businesses that operate within a state. If a business makes inter-state supplies, it cannot opt for the Composition Scheme.
- E-commerce sellers: The Composition Scheme is not available to businesses that supply goods through e-commerce platforms.
- Manufacturers of certain goods: Businesses that manufacture ice cream, pan masala, or tobacco and tobacco products cannot opt for the Composition Scheme.
- Casual taxable persons and non-resident taxable persons: These types of businesses are not eligible to opt for the Composition Scheme.
- Businesses with turnover above the threshold limit: Businesses with an aggregate turnover of more than Rs. 1.5 crore in a financial year cannot opt for the Composition Scheme.
In summary,
businesses that supply services, operate across states, sell through e-commerce platforms, manufacture certain goods, or have a turnover above the threshold limit cannot opt for the Composition Scheme under GST.
