GST Composition Levy Update 2026: Section 10(2A) and REG-14

GSTN has revised the GST Portal’s composition-category options and introduced a way to change the selected category through FORM GST REG-14. This short guide explains who should check the change, how Option A and Option B differ, and what existing composition taxpayers should verify.

Updated 2 November 2026. Based on the GSTN advisory on composition levy functionality dated 1 November 2026. Check the applicable legal eligibility and your GST Portal details before taking action.

TaxPower GST Composition Levy Update 2026 showing Section 10(2A), Option A and Option B, and REG-14 category amendment

What changed?

The portal now has a separate Section 10(2A) category. Select applicable Section 10(1) categories (Option A) or Section 10(2A) (Option B), not both. GSTN also permits category amendments through REG-14 and requires accurate selections across same-PAN GSTINs.

1. What should you know before reading this update?

The GST composition levy is an option under Section 10 of the CGST Act for taxpayers who meet the prescribed conditions. A composition category identifies the relevant statutory category selected on the GST Portal; it is not, by itself, a decision on tax rates, turnover limits or eligibility.

Who should check? Existing composition taxpayers, those opting for composition, and tax professionals handling several GST registrations (GSTINs) under the same PAN. The November 2026 advisory changes the portal’s category choices and amendment facility, not the underlying statutory eligibility rules.

2. Which GST forms are affected?

The changes concern REG-01 (registration), CMP-02 (composition option), CMP-04 (withdrawal) and REG-14 (amendment). Each form has a different purpose; the advisory does not introduce a new filing process for every taxpayer.

3. Option A versus Option B: which composition category applies?

These are categories shown in the GST Portal, not two new taxes. The correct category depends on the taxpayer’s eligibility under the applicable GST law.

Option A — Existing Section 10(1) categories

More than one applicable category can be selected within Option A:

  • Manufacturers, other than those making Government-notified goods for which the composition option is unavailable.
  • Suppliers making supplies referred to in clause (b) of paragraph 6 of Schedule II.
  • Any other supplier eligible for composition levy under Section 10(1).

Option B — Section 10(2A)

One category only: “Person eligible for composition levy under Section 10(2A)”.

This is a separate, single selection from the Section 10(1) categories above.

Important: Option A and Option B cannot be selected together. Actual eligibility depends on the CGST Act and applicable rules, not merely on a dropdown choice.

4. When is REG-14 relevant to a composition taxpayer?

Composition taxpayers may now change or update their selected category through FORM GST REG-14. This does not mean that every composition taxpayer automatically has to file an amendment: first check whether the current category is correct.

Check business activity, Section 10 eligibility and current registration details before applying. Amending a category does not establish statutory eligibility. For general amendment rules, see our REG-14 amendment guide.

5. Check every GSTIN linked to the same PAN

The advisory asks taxpayers to keep the category correct across all GSTINs under the same PAN. For example, where a taxpayer has registrations in more than one State under one PAN, check the composition category shown against each relevant GSTIN.

Do not assume one amendment automatically updates the others. Preserve the portal acknowledgement and updated records.

6. Is Section 10(2A) itself a new composition scheme?

No. Section 10(2A) predates November 2026. The update adds a portal category and amendment functionality, not a newly enacted levy or tax rate.

The advisory does not announce new rates or turnover limits. Check current law separately when assessing eligibility.

7. Practical checklist for composition taxpayers

  • Confirm whether your business falls under Section 10(1) or Section 10(2A).
  • Review the selected category before filing REG-01 or CMP-02.
  • Do not mix Option A and Option B selections.
  • Where an existing selection needs correction, assess the REG-14 amendment route.
  • Check category accuracy for every relevant same-PAN GSTIN.
  • Preserve submission evidence and verify updated particulars on the official GST Portal.

8. FAQs on the composition category update

These questions cover the practical selection and amendment points raised by the advisory.

No. GSTN allows multiple applicable selections within Option A, but Option A and Option B cannot be selected together.

The advisory does not say that every composition taxpayer must file an amendment. Review the category currently shown on the GST Portal; where it needs to be changed or updated, consider the new REG-14 facility and the applicable requirements. Also check all GSTINs under the same PAN.

No new rate is announced in this advisory. Section 10(2A) predates the November 2026 GST Portal enhancement.

GSTN asks taxpayers to ensure that the selected composition category is correctly updated across GST registrations linked to the same PAN. Verify the position for every relevant GSTIN.

Official sources and scope

GST Portal applications versus TaxPower GST software: The composition category selection and amendments described in this advisory, including relevant REG-01, CMP-02, CMP-04 and REG-14 applications, are handled on the official GST Portal. TaxPower GST does not provide filing of these registration, composition-option, withdrawal or category-amendment applications within the software.

Composition compliance in TaxPower GST: Separately, TaxPower GST supports composition-return filing workflows, including CMP-08 and annual GSTR-4, challan-related utilities and related reports. The available reports include CMP-08 summaries and GSTR-4A information/reporting views. These software facilities should not be confused with filing an REG-14 composition-category amendment on the GST Portal.

Related reading: GST registration guide · REG-14 amendment process.

Managing composition GST returns? TaxPower GST provides CMP-08 and annual GSTR-4 workflows, challan-related utilities and reporting tools. Contact TaxPower GST to confirm the suitable edition and features for your requirements.

Disclaimer: This article is intended for general information and professional awareness, not case-specific GST or legal advice. Composition levy eligibility, category selection and REG-14 amendment requirements depend on the applicable CGST/SGST provisions, rules, notifications, official GST Portal guidance and the taxpayer’s facts. The GSTN advisory explains portal functionality; it does not by itself establish eligibility. Verify the latest official position and obtain qualified professional advice where necessary.