Subject: Regulatory Update – Introduction of Separate Category for Section 10(2A) under the GST Composition Scheme
Dear Professional Colleagues and Taxpayers,
The Goods and Services Tax Network (GSTN) has issued a vital advisory dated November 1, 2026, introducing significant enhancements to the Composition Levy functionality on the GST portal. This update aligns the portal structure with the statutory provisions of the CGST Act, 2017, by incorporating a dedicated category for eligible service providers.
Key Functional Updates:
1. Rollout of Dedicated Section 10(2A) Category
Previously, the GST portal lacked a distinct classification for taxpayers opting for the composition levy under Section 10(2A). The portal has now introduced a dedicated selection titled “Person eligible for composition levy under Section 10(2A)” to accommodate eligible service providers and mixed suppliers.
2. Restructured Selection Architecture (Mutual Exclusivity)
Taxpayers seeking or registered under the Composition Scheme must choose between two mutually exclusive option groups:
• Option A (Section 10(1) Categories): Covers eligible manufacturers, suppliers of food/restaurant services, and other traditional traders. Taxpayers can select multiple applicable categories within this block.
• Option B (Section 10(2A) Category): Applies strictly to eligible service providers and mixed suppliers. This is a single-selection category.
Important Note: Taxpayers are permitted to select either Option A or Option B. Both options cannot be selected simultaneously.
3. Impacted Statutory Forms:
These portal modifications are now live and apply to the following electronic applications:
• FORM GST REG-01 (Application for Fresh Registration)
• FORM GST CMP-02 (Intimation to Opt for Composition Levy)
• FORM GST CMP-04 (Intimation of Withdrawal from Composition Levy)
• FORM GST REG-14 (Application for Amendment of Registration)
4. Category Revision Facility via FORM GST REG-14
A new electronic facility has been introduced enabling existing composition taxpayers to change or update their registered composition category via an amendment application in FORM GST REG-14.
Action Required:
Taxpayers operating across multiple states must ensure that their selected composition category is updated consistently and accurately across all GSTINs linked to the same Permanent Account Number (PAN), as composition rules apply at the PAN level.
Please review your statutory eligibility criteria and ensure your registration data is correctly aligned on the portal to maintain absolute compliance.
Above Information is for educational purposes only