GSTN Advisory (1 November 2026): New Composition Scheme Category Under Section 10(2A) and REG-14 Changes

Imagine a small business owner who wants to opt for the GST Composition Scheme but is unsure which category to select on the GST portal. To make this process clearer, GSTN has introduced a new category for eligible taxpayers under Section 10(2A) and a facility to update the selected category. These changes came into effect through the advisory dated 1 November 2026.

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Let us understand what has changed and what composition taxpayers need to do.

A. New Composition Category Under Section 10(2A)

Earlier, the GST portal provided composition categories for taxpayers opting under Section 10(1) of the CGST Act. GSTN has now added a separate category for taxpayers eligible under Section 10(2A).

The new category is:

“Person eligible for composition levy under Section 10(2A)”

With this update, taxpayers have two options on the GST portal:

Option A: Existing Categories (Multiple Selections Allowed)

Taxpayers can select one or more applicable categories from the following:

1. Manufacturers, other than manufacturers of goods notified by the Government as ineligible for the Composition Scheme.
2. Suppliers making supplies covered under clause (b) of paragraph 6 of Schedule II, such as eligible restaurant service providers.
3. Any other supplier eligible for the Composition Scheme under Section 10(1).

Option B: New Category (Single Selection)

Person eligible for composition levy under Section 10(2A).

Important: Taxpayers can select either Option A or Option B. They cannot select categories from both options together.

For example: an eligible trader opting under Section 10(1) can select the relevant category under Option A. A taxpayer who qualifies for the separate composition option under Section 10(2A) must select Option B.

Note: This update helps the GST portal identify taxpayers opting under the two different composition provisions. It does not create a new tax scheme or change the existing eligibility conditions of Section 10(2A).

B. Facility to Change the Composition Category Through Form REG-14

GSTN has also introduced a facility that allows existing composition taxpayers to change or update their selected composition category through Form GST REG-14.

Earlier, taxpayers who needed to amend their registration details had to use the registration amendment process. With the new functionality, the selected composition category can also be updated through the REG-14 amendment application.

Example: Suppose a business is already registered under the Composition Scheme but needs to correct or update its selected composition category. It can use Form REG-14 to make the required amendment instead of applying for fresh GST registration only for this change.

The taxpayer must select the category that correctly matches its eligibility under the relevant provision of Section 10.

C. Update the Composition Category Across All GSTINs Under the Same PAN

GSTN has clarified that taxpayers must ensure that their selected composition category is correctly updated across all GSTINs linked to the same PAN.

Example:

Suppose ABC Enterprises has GST registrations in Haryana, Delhi and Rajasthan under the same PAN. If it opts for the Composition Scheme, it must ensure that the correct composition category is updated across all three GSTINs.

D. Which GST Forms Are Affected by the New Changes?

The new GST portal functionality applies to applications filed through the following forms:

Therefore, taxpayers filing these forms should check the updated composition category options and select the correct category based on their eligibility.

What Should Composition Taxpayers Do After the GSTN Advisory?

After the GSTN advisory dated 1 November 2026, taxpayers should:

• Check whether they qualify under Section 10(1) or Section 10(2A) of the CGST Act.
• Select the correct composition category on the GST portal.
• Avoid selecting Option A and Option B together.
• Use Form REG-14 if they need to change or update their existing composition category.
• Ensure that the selected category is correctly updated across all GSTINs linked to the same PAN.

Remember: The November 2026 advisory does not introduce Section 10(2A) or change its turnover limit, eligibility conditions or tax rate. It only adds a separate portal category for taxpayers eligible under this existing provision and provides a facility to update the selected composition category through REG-14.

What Is Section 10 of the CGST Act?

Section 10 of the Central Goods and Services Tax (CGST) Act, 2017 deals with the Composition Levy Scheme. It allows eligible small taxpayers to pay GST at a prescribed rate on their turnover instead of following the regular GST system. They cannot claim Input Tax Credit (ITC) or collect GST separately from customers

Section 10 has three important provisions:

Section 10(1): Regular Composition Scheme

Section 10(1) allows eligible manufacturers, restaurant service providers and other eligible suppliers, such as traders, to opt for the regular Composition Scheme.

The notified turnover limits in the preceding financial year are:

• ₹1.5 crore for most States and Union Territories.
• ₹75 lakh for Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura and Uttarakhand.

Eligible taxpayers can also supply certain services up to 10% of their preceding financial year's turnover or ₹5 lakh, whichever is higher.

Section 10(2): Conditions for the Regular Composition Scheme

Section 10(2) sets additional conditions for taxpayers opting under Section 10(1). These include:

• No non-taxable supplies under the CGST Act.
• No inter-State outward supplies.
• Restrictions on specified services supplied through e-commerce operators required to collect TCS under Section 52.
• No manufacture of goods notified as ineligible.
• The taxpayer must not be a casual or non-resident taxable person.
• All registered persons under the same PAN must opt for the scheme under Section 10(1).

Section 10(2A): Composition Scheme for Other Eligible Taxpayers

Section 10(2A) provides a separate composition option for registered taxpayers who are not eligible under Section 10(1) but meet the conditions of this provision. Their aggregate turnover in the preceding financial year must not exceed ₹50 lakh.

They must also meet conditions relating to non-taxable supplies, inter-State outward supplies, specified e-commerce services, notified ineligible supplies and taxpayer status. All registered persons under the same PAN must opt under Section 10(2A).

Composition Tax Rate: The prescribed total rate is 6% (3% CGST + 3% SGST or the corresponding UTGST) on the turnover of supplies of goods and services in the State or Union Territory.

Conclusion

The GSTN advisory dated 1 November 2026 introduces a separate portal category for taxpayers eligible under Section 10(2A) and allows existing composition taxpayers to update their selected category through Form REG-14. Taxpayers should select the correct category, follow the conditions under Section 10 and ensure that the category is correctly updated across all GSTINs linked to the same PAN.

Need help with GST registration or compliance? Connect with Startup Movers for assistance with GST registration, amendments and GST compliance