Eligibility Criteria for the Composition Scheme

To be eligible for the GST Composition Scheme, businesses must meet the following criteria:

  1. Turnover Limit: The business must have a turnover of up to ₹1.5 crore (₹75 lakhs for special category states).
  2. Type of Business: The business should be a manufacturer, trader, or restaurant (not providing services like consulting or professional services).
  3. No Inter-State Supply: The business must not be involved in inter-state sales, i.e., selling goods across state borders.
  4. No E-Commerce: Initially, businesses involved in e-commerce were not eligible for the Composition Scheme. However, there are provisions that allow certain e-commerce businesses to opt for it, which we will discuss next.

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