Back

Update · GSTN Advisory No. 685, 1 November 2026 · checked 14 November 2026

GST composition: service providers under section 10(2A) now have their own category on the portal

The GST portal now separates the two composition schemes. Option A is the usual scheme for traders, manufacturers and restaurants under section 10(1); Option B is the scheme for small service providers under section 10(2A). A business picks one, not both, and can change its category through an amendment.

Applies to
Small businesses on, or applying for, the GST composition scheme
Effective from
1 November 2026
Published
1 November 2026
  • Two options. In REG-01, CMP-02, CMP-04 and REG-14 the portal now asks you to choose Option A (the section 10(1) categories: manufacturer, restaurant service, other supplier; more than one can be ticked) or Option B (a person eligible under section 10(2A)). Both cannot be chosen together.
  • Who is section 10(2A) for. It is the composition scheme for small suppliers of services, or of mainly services, whose turnover in the previous year was up to ₹50 lakh. They pay tax at a flat rate of 6% (3% CGST and 3% SGST) and cannot claim input tax credit or charge GST on their invoices.
  • Changing category. A composition taxpayer can now correct or change the category through a REG-14 amendment.
  • All registrations under one PAN. The category chosen must be the same for every GSTIN on the same PAN.

What to do

If you are on composition, open your registration and check that the category shown is the right one. A service business wrongly shown under Option A, or a trader under Option B, should file a REG-14 amendment, and do it for every registration on the PAN.

Sources

This update is for general information only and does not constitute professional advice. Please consult a qualified professional before acting on it.

← All updates