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SECTION 10 – COMPOSITION LEVY (Section 10 of the Central Goods and Services Tax Act, 2017) 1. OBJECT OF SECTION 10 The purpose of Section 10 is to provide a simple tax system for small taxpayers . Instead of calculating GST on each sale, they pay tax at a fixed percentage of turnover . 2. SECTION 10(1) – BASIC COMPOSITION SCHEME Bare Provision (Simplified) A registered person with turnover up to prescribed limit may opt to pay tax at a fixed rate instead of normal GST. Easy Explanation Small traders do not need to calculate GST on every transaction. They simply pay a fixed percentage on their total turnover. Example A shopkeeper has turnover of 80 lakh rupees. Instead of charging GST on each sale, he pays tax at fixed rate (for example 1 percent). Problem A trader has turnover of 2.5 crore rupees. Can he opt? Answer No, because it exceeds the prescribed limit. 3. SECTION 10(2) – CONDITIONS AND RESTRICTIONS Bare Provision (Simplified) A person is not eligible...