The Institute of Chartered Accountants of India (ICAI), through its GST & Indirect Taxes Committee, has released the revised edition of the “Handbook on Composition Scheme under GST (February 2026)”. The publication has been comprehensively updated to incorporate amendments, notifications, circulars and judicial developments up to 31st January 2026.
Strengthening Compliance Support for Small Taxpayers
The Composition Scheme under the Goods and Services Tax (GST) framework has been designed to ease the compliance burden for small taxpayers by enabling payment of tax at a fixed rate on turnover, along with simplified return filing and record-keeping requirements. The revised Handbook provides a structured and practical analysis of the evolving legal and procedural framework governing the scheme.
The publication elaborates on:
- Eligibility criteria and threshold limits for opting into the scheme;
- Conditions and restrictions prescribed under Section 10 of the CGST Act, 2017 and related Rules;
- Treatment of service supplies within prescribed limits;
- Reverse charge mechanism implications;
- Procedural aspects such as filing of forms (CMP-02, CMP-08, GSTR-4, etc.);
- Withdrawal, denial, and cancellation provisions;
- Relevant notifications, circulars and removal of difficulty orders.
Updated Legal Framework and Threshold Limits
The Handbook captures significant developments, including:
- Enhancement of threshold limits up to ₹1.5 crore (₹75 lakh for specified States) for suppliers of goods;
- Introduction and operationalisation of the composition scheme for suppliers of services or mixed suppliers (up to ₹50 lakh turnover in preceding financial year);
- Amendments clarifying inclusion/exclusion of exempt services and interest income while computing aggregate turnover;
- Changes effective from 1st October 2023 allowing composition dealers to supply goods through electronic commerce operators subject to prescribed conditions.
Practical Guidance with Illustrations
The revised edition presents statutory provisions alongside illustrations, comparative tables and case-based analysis to assist professionals and stakeholders in understanding practical implications. The Handbook is intended to serve as a ready reference for chartered accountants, tax practitioners, small businesses and other stakeholders involved in GST compliance.
ICAI’s Continued Commitment
In the Foreword, the President of ICAI highlighted the importance of a simple and predictable tax framework for small taxpayers and noted that the updated Handbook would strengthen the knowledge base of professionals and promote better compliance under the GST regime
The GST & Indirect Taxes Committee of ICAI reiterated its commitment to providing updated technical guidance in line with legislative and procedural changes in GST.
The Handbook can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2026/02/Composition-GST-Feb-26.pdf
