Section 10: Composition levy

Q: What does Section 10 of The State Goods and Services Tax Act, 2017 (Model) (SGST) deal with?

Section 10 SGST pertains to "Composition levy". It is part of the The State Goods and Services Tax Act, 2017 (Model), a legislation enacted by the Parliament of India. Section 10 of The State Goods and Services Tax Act, 2017 (Model) (SGST) governs composition levy. As verified on 22 May 2026.

Q: Is Section 10 SGST still in force?

Yes, Section 10 of the The State Goods and Services Tax Act, 2017 (Model) is currently in force across the Republic of India.

Q: What is धारा 10 SGST?

धारा 10 SGST is the Devanagari Hindi reference for Section 10 of the The State Goods and Services Tax Act, 2017 (Model). Section 10 of The State Goods and Services Tax Act, 2017 (Model) (SGST) governs composition levy. As verified on 22 May 2026.

Q: What is Dhara 10 SGST?

Dhara 10 SGST is the Roman Hindi reference for Section 10 of the The State Goods and Services Tax Act, 2017 (Model). "Dhara" means "Section" in Hindi. Section 10 of The State Goods and Services Tax Act, 2017 (Model) (SGST) governs composition levy. As verified on 22 May 2026.

Q: How to cite Section 10 of The State Goods and Services Tax Act, 2017 (Model)?

Cite as: "Section 10, The State Goods and Services Tax Act, 2017 (Model) (SGST)" in legal briefs. For academic writing, use the BlueBook format: The State Goods and Services Tax Act, 2017 (Model), 2017, § 10 (India).

Law on Tips Editorial Board

(1)

Notwithstanding anything to the contrary contained in this Act but subject to the provisions of sub-sections (3) and (4) of section 9, a registered person, whose aggregate turnover in the preceding financial year did not exceed fifty lakh rupees may opt to pay, [in lieu of the tax payable by him under sub-section (1) of section 9, an amount of tax calculated at such rate] [Substituted 'in lieu of the tax payable by him, an amount calculated at such rate' by Punjab Act No. 1 of 2019, dated 8.1.2019.] as may be prescribed, but not exceeding, -

(2)

The registered person shall be eligible to opt under sub-section (1), if -

(2A)

[ Notwithstanding anything to the contrary contained in this Act, but subject to the provisions of sub-sections (3) and (4) of section 9, a registered person, not eligible to opt to pay tax under sub-section (1) and sub-section (2), whose aggregate turnover in the preceding financial year did not exceed fifty lakh rupees, may opt to pay, in lieu of the tax payable by him under sub-section (1) of section 9, an amount of tax calculated at such rate as may be prescribed, but not exceeding three per cent of the turnover in the State, if he is not,-

(3)

The option availed of by a registered person under sub-section (1) [or sub-section (2A), as the case may be,] [Inserted by Punjab Act No. 3 of 2020, dated 20.2.2020.] shall lapse with effect from the day on which his aggregate turnover during a financial year exceeds the limit specified under sub-section (1) [or sub-section (2A), as the case may be,] [Inserted by Punjab Act No. 3 of 2020, dated 20.2.2020.].

(4)

A taxable person to whom the provisions of sub-section (1) [or, as the case may be, sub-section (2A)] [Inserted by Punjab Act No. 3 of 2020, dated 20.2.2020.] apply shall not collect any tax from the recipient on supplies made by him nor shall he be entitled to any credit of input tax.

(5)

If the proper officer has reasons to believe that a taxable person has paid tax under sub-section (1) [or, as the case may be, sub-section (2A)] [Inserted by Punjab Act No. 3 of 2020, dated 20.2.2020.] despite not being eligible, such person shall, in addition to any tax that may be payable by him under any other provisions of this Act, be liable to a penalty and the provisions of section 73 or section 74 shall, mutatis mutandis, apply for determination of tax and penalty.

[Explanation 1. - For the purposes of computing aggregate turnover of a person for determining his eligibility to pay tax under this section, the expression "aggregate turnover " shall include the value of supplies made by such person from the 1st day of April of a financial year up to the date when he becomes liable for registration under this Act, but shall not include the value of exempt supply of services provided by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount.

Explanation 2.—For the purposes of determining the tax payable by a person under this section, the expression "turnover in State " shall not include the value of following supplies, namely: -