Summary: The Goods and Services Tax Network (GSTN), through an advisory dated 1 November 2026, has announced enhancements to the composition levy functionality on the GST portal. The changes apply to taxpayers registered under or opting for the Composition Scheme and affect applications filed through FORM GST REG-01, FORM GST CMP-02, FORM GST CMP-04 and FORM GST REG-14. A new category, “Person eligible for composition levy under Section 10(2A)”, has been introduced alongside the existing composition categories under Section 10(1) of the CGST Act, 2017. Under Option A, taxpayers may select multiple applicable categories covering eligible manufacturers, suppliers referred to in clause (b) of paragraph 6 of Schedule II and other suppliers eligible under Section 10(1). Under Option B, taxpayers may select the new Section 10(2A) category. The two options cannot be selected together. GSTN has also introduced a facility for composition taxpayers to change or update their selected composition category through an amendment application in FORM GST REG-14. Taxpayers must ensure that the selected category is correctly updated across all GST registrations linked to the same Permanent Account Number (PAN). The enhancements provide a separate classification for persons eligible under Section 10(2A) and an electronic mechanism for modifying composition registration particulars.
Goods and Services Tax
Government of India, States and Union Territories
Advisory on Enhancements Related to Composition Levy Functionality under GST
Nov 1st, 2026
Some changes have been introduced on the GST portal for taxpayers registered under or opting for, the Composition Scheme. These changes will apply to applications filed through Form REG-01, CMP-02, CMP-04 and REG-14.
1. Introduction of New Composition Category A new category has been introduced for composition taxpayers:“Person eligible for composition levy under Section 10(2A)”
Accordingly, taxpayers will now have the following options related to composition scheme:
Option A (Existing categories – multiple selections allowed)
- Manufacturers, other than manufacturers of such goods as may be notified by the Government for which option is not available
- Suppliers making supplies referred to in clause (b) of paragraph 6 of Schedule II
- Any other supplier eligible for composition levy falling in Section 10(1)
Option B (New category – single selection)
- Person eligible for composition levy under Section 10(2A)
Taxpayers can select either Option A categories or Option B category. But both the options cannot be selected together.
2. Facility to Change Composition Category through REG-14
A new functionality has been introduced to enable composition taxpayers to change/update their category through Amendment application (REG-14).
Taxpayers must ensure that the selected category is correctly updated across all GSTINs linked to the same PAN.
Thanking you,
Team GSTN
