- What
- Composition Levy functionality enhanced on GST portal
- Advisory
- GSTN, dated 1 November 2026
- New category
- Person eligible under Section 10(2A)
- Forms affected
- REG-01, CMP-02, CMP-04, REG-14
The short version
- GSTN has enhanced the Composition Scheme functionality across FORM REG-01, CMP-02, CMP-04 and REG-14.
- A new composition category is now available — "Person eligible for composition levy under Section 10(2A)" — the route for service providers and mixed suppliers who don't qualify under the regular Section 10(1) composition scheme.
- You choose either the existing Section 10(1) categories (Option A) or the new Section 10(2A) category (Option B) — not both. Option A allows multiple selections; Option B is a single selection.
- Composition taxpayers can now change their category via an amendment (REG-14) — and must ensure the selected category is updated consistently across all GSTINs on the same PAN.
The GST composition scheme just got a cleaner structure on the portal. Until now, the form didn't clearly separate the two different composition routes — the regular one for goods, manufacturers and restaurants, and the separate one for service providers. GSTN has fixed that with a distinct new category and an either/or selection, plus a long-asked-for facility to switch your category without cancelling and re-registering. Here's what changed and who it affects.
Two composition routes — now clearly separated
The composition scheme actually has two legs, for different kinds of small businesses:
| Route | Who it's for | Typical rate / threshold |
|---|---|---|
| Section 10(1) | Manufacturers, traders and restaurant (food) suppliers dealing mainly in goods | 1% (traders/manufacturers), 5% (restaurants); turnover up to ₹1.5 crore (₹75 lakh in special-category States) |
| Section 10(2A) | Service providers and mixed suppliers not eligible under 10(1) | 6% (3% CGST + 3% SGST); turnover up to ₹50 lakh |
These are mutually exclusive schemes — a business is in one or the other, not both. The portal now reflects that reality through the new category and the either/or selection.
The new category and the Option A / Option B choice
When opting for composition, taxpayers now choose between two option blocks:
- Option A — existing Section 10(1) categories (multiple selections allowed):
• Manufacturers (other than manufacturers of goods notified as ineligible)
• Suppliers of food/restaurant services (clause (b) of paragraph 6 of Schedule II)
• Any other supplier eligible under Section 10(1) - Option B — the new Section 10(2A) category (single selection):
• Person eligible for composition levy under Section 10(2A)
You can't mix Option A and Option B
This is the rule to get right. You select either the Option A (Section 10(1)) categories or the Option B (Section 10(2A)) category — the two cannot be selected together. Pick the block that matches your business: goods/manufacturing/restaurant → Option A; service provider or mixed supplier under 10(2A) → Option B. Choosing the wrong block puts you under the wrong rate and turnover regime.
Now you can change your composition category — via REG-14
A genuinely useful addition: composition taxpayers can now change or update their composition category through an amendment application (FORM GST REG-14). Previously, correcting or switching the category was awkward; now it's a portal amendment.
Keep it consistent across all your GSTINs
GSTN specifically flags this: if you hold multiple GSTINs under the same PAN, make sure the selected composition category is updated correctly across all of them. Composition is a PAN-level choice, so an inconsistent category on one GSTIN can create mismatches — update them together.
Which forms are affected
- REG-01 — opting for composition at the time of fresh registration.
- CMP-02 — an existing regular taxpayer opting into composition.
- CMP-04 — withdrawing from the composition scheme.
- REG-14 — amending registration details, now including the composition category.
What composition taxpayers should do
- Identify your correct route. Goods/manufacturing/restaurant under 10(1) → Option A; service provider or mixed supplier under 10(2A) → Option B.
- Select the right option block when registering (REG-01) or opting in (CMP-02) — never both A and B.
- Review your existing category. If it was recorded imprecisely before, use REG-14 to correct it to the right category now.
- Sync across GSTINs. Ensure the same composition category is set on every GSTIN under your PAN.
- Confirm eligibility first. Check the turnover limit and conditions for your route (₹1.5 crore for 10(1); ₹50 lakh for 10(2A)) before opting or switching.
Frequently asked
What is the new composition category?
Can I select both Section 10(1) and Section 10(2A) categories?
What's the difference between Section 10(1) and 10(2A) composition?
Can I change my composition category now?
Which forms do these changes apply to?
On the composition scheme — or thinking of opting in?
efiletax helps you pick the right composition route (10(1) or 10(2A)), opt in or switch correctly via CMP-02/REG-14, and keep your category consistent across GSTINs — so you're on the right rate and compliant.
Talk to our GST teamDisclaimer: This article summarises the GSTN advisory dated 1 November 2026 on enhancements to the Composition Levy functionality on the GST portal, including the new category "Person eligible for composition levy under Section 10(2A)", the Option A / Option B selection across FORM REG-01, CMP-02, CMP-04 and REG-14, and the facility to change the composition category via REG-14. Rate and turnover figures are indicative of the composition scheme under the CGST Act and may vary with notifications in force. It is for general understanding and is current as at the date of publication; please refer to the official advisory and the CGST Act/Rules, and verify your eligibility and category on the GST portal before acting. This is not legal or tax advice — please consult a qualified professional. Talk to efiletax if you need help.