The person opting for composition levy should first satisfy the following basic conditions:
(i) He should be a registered person under the GST law
(ii) his aggregate turnover in the preceding financial year should not exceed Rs. 1 crore.
If the above two basic conditions arc satisfied, then such registered person shall be eligible to opt under section 10(1) of composition scheme, if:—
(a) he is not engaged in the supply of services other than supplies, by way of or as part of any service of goods, being food or any other article for human consumption or any drink (other than alcoholic liquor for human consumption), provided such supply or service is for cash, deferred payment or other valuable consideration);
In other words, persons engaged in suppl of services shall not he eligible for the composition scheme However, supplier of restaurant service, mandap keeper and outdoor catering service shall be eligible for composition scheme.
(b) he is not engaged in making any supply of goods which arc not leviable to tax under this Act (i.e. alcoholic liquor for human consumption, petroleum crude, high speed diesel, motor spirit, natural gas, and (v) Aviation Turbine Fuel);
(c) he is not engaged in making any inter-State outward supplies of goods;
(d) he is not engaged in making any supply of goods through an electronic commerce operator who is required to collect tax at source under section 52 ; and
(e) he is not a manufacturer of such goods as may be notified by the Government on the recommendations of the Council.
The Government has notified that the manufacturers of—
— ice-cream and other edible ice, whether or not containing cocoa;
— Pan Masala:
— Tobacco and manufactured tobacco substitutes
shall not be eligible to opt fir composition scheme.