Who are the traders not eligible for the composition scheme?

The following persons are not allowed to choose the composition scheme: a. A supplier of services (except restaurants); b. A person who makes any supply of goods that is not subject to tax under this Act; or c. A supplier making any supply to any electronic commerce operator, which is required to collect tax from source under section 52. Thus, traders should consider him selling goods to a state. He will not be eligible if he supplies to any other state. E commerce operators should not be used by traders to supply goods. In this case, he must register. If a trader supplies exempted goods, then he does not need to register. Not only is it important to remember that the trader could procure goods from any country and still be eligible for the composition scheme.