what is Section 10 under CGST act. ?

Section 10 of the Central Goods and Services Tax (CGST) Act, 2017 deals with the Composition Levy Scheme.
This scheme is designed for small taxpayers to simplify GST compliance and reduce the burden of maintaining detailed records and filing regular returns.
Meaning of Composition Levy
Under this section, eligible registered taxpayers can pay GST at a fixed percentage of turnover instead of paying tax at normal GST rates.
This helps small businesses by making tax calculation and compliance easier.
Who Can Opt for Composition Scheme?
A registered person can opt for composition levy if:
Aggregate turnover in the preceding financial year does not exceed the prescribed limit (generally up to ₹1.5 crore, ₹75 lakh for some special category states)
They are engaged in:
Manufacturers
Traders
Restaurants (not serving alcohol)
Service providers may also opt under special conditions as notified.
Conditions for Eligibility
The taxpayer should not be engaged in:
Supply of services (except allowed services)
Interstate outward supply of goods
Supply through e-commerce operators like Amazon or Flipkart (where tax is collected at source)
Manufacture of notified goods such as ice cream, pan masala, tobacco, etc.
Casual taxable person or non-resident taxable person
Tax Rate under Composition Scheme
Generally:
Manufacturers and Traders – 1%
Restaurants – 5%
Other eligible suppliers – as prescribed
(Subject to government notifications)
Important Features
Cannot collect GST from customers separately
Cannot claim Input Tax Credit (ITC)
Must mention “Composition Taxable Person” on bill of supply
Simpler return filing compared to normal taxpayers
Objective of Section 10
The main aim is to:
Reduce compliance burden
Promote ease of doing business
Help small taxpayers
Encourage voluntary tax compliance
Conclusion
Section 10 of the CGST Act provides relief to small businesses by allowing them to pay GST at a fixed lower rate under the Composition Scheme. It simplifies taxation and reduces procedural difficulties for eligible taxpayers.
This section is especially useful for small traders, manufacturers, and restaurant owners.

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