Composition scheme threshold revised

The annual turnover limit for opting into the composition scheme has been revised for service-oriented businesses.

18 Jun 2026

What changed

The turnover threshold for service-oriented businesses to opt into the composition scheme has been revised, widening eligibility for small service providers.

Why it matters

More small businesses offering services can now access the simpler, lower flat-rate compliance regime instead of standard GST registration.

Before you switch

Remember that composition taxpayers cannot collect GST from customers or claim input tax credit, so the switch makes most sense for businesses whose customers don't need to claim credit themselves.