Composition.

This discussion clarifies the Goods and Services Tax (GST) composition scheme. It explains that you can opt for the scheme from your registration date or switch to it by filing Form GST CMP-02. While you can use existing ITC, you must reverse ITC on closing stock and capital goods by filing Form ITC-03. The scheme has different eligibility criteria and tax rates for traders (1% GST on up to ₹1.5 crore turnover) and service providers (6% GST on up to ₹50 lakh turnover). Traders can provide limited services, but exceeding thresholds makes them liable under the service provider rules. Importantly, those supplying goods via e-commerce platforms that deduct TCS are ineligible for the composition scheme.