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Q1. Composition Levy Scheme under the CGST Act, 2017 Introduction Composition Levy Scheme under the CGST Act, 2017 The Composition Levy Scheme is provided under Section 10 of the Central Goods and Services Tax (CGST) Act, 2017 . It is a simplified taxation scheme designed for small taxpayers who find it difficult to maintain detailed accounts and comply with complex GST procedures. Under the normal GST system, a registered taxpayer must maintain proper records of purchases, sales, input tax credit (ITC), tax invoices, and must file multiple monthly returns. This process can be complicated and expensive for small businesses. Therefore, the government introduced the composition scheme to reduce compliance burden and encourage small businesses to become part of the tax system. Under this scheme, the taxpayer pays tax at a fixed percentage of turnover instead of normal GST rates and follows simple compliance procedures. Objective of Composition Scheme The main objectives of t...