Any trader who does not have an aggregate total turnover exceeding INR 50 lakhs can opt to be registered under the composition levy scheme, subject to certain conditions. It is pertinent to note that a trader having an aggregate turnover exceeding INR 50 Lakhs can only be registered as a regular dealer and not under the composition levy scheme. Once a dealer has switched to the regular dealer, he will have to comply with the conditions imposed on regular dealers and will no longer be eligible for any benefits under the composition levy scheme. These benefits include availing Input Tax Credit or ITC towards inward supplies and a charge on GST on the outward supplies.
Utilisation of ITC (SGST) 1. Can be used to pay tax of SGST first 2. Any remaining amount canbe used to pay tax of IGST. 3. you cannot use ITC of SGST to pay CGST
Taxpayers registered under composition scheme under the current regime will be allowed to take credit of input held in stock, or in semi-finished goods or in finished goods on the day immediately preceding the date from which they opt to be taxed as a regular tax payer.