- Short answer
- Yes, in most states up to Rs 1.5 crore turnover, if you sell goods only within your state — one interstate sale ends it.
- Lower limit
- Rs 75 lakh in Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura and Uttarakhand.
- Excluded at any turnover
- Makers of ice cream, pan masala, tobacco or manufactured tobacco substitutes, aerated water, certain fly ash, brick and tile products.
- Marketplaces
- Goods allowed since 1 October 2023, inside your state only; the operator collects TCS.
- Charging GST
- Not allowed: you issue a bill of supply instead of a tax invoice.
- Shopify documentation
- Shopify's India GST page, read October 9, 2026, doesn't mention the composition scheme.
Which Shopify stores can opt for the composition scheme?
Registered stores can opt if their aggregate turnover in the preceding financial year did not exceed Rs 1.5 crore under Notification 14/2019-CT, or Rs 75 lakh in Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura and Uttarakhand. Which sales count toward that turnover has its own page.
Section 10(2)(c) adds the condition that you are "not engaged in making any inter-State outward supplies of goods or services", so one inter-State sale ends the option — and an inter-State sale of goods makes you register regardless of turnover.
Manufacturers of ice cream, pan masala, tobacco or manufactured tobacco substitutes, aerated water and, since 1 April 2022, certain fly ash, brick and tile products (the fly ash entry widened on 18 July 2022) can't opt at any turnover. Registrations sharing one Permanent Account Number opt together or not at all.
Can a composition seller use its own store and marketplaces?
Yes. Section 10(2)(d) restricts supplies through an operator "who is required to collect tax at source under section 52", and selling your own products on your own website needs no TCS.
Marketplaces opened to composition sellers of goods on 1 October 2023, when the Finance Act 2023 omission of "goods or" from that clause came into force under Notification 28/2023-CT; services through such an operator stay barred.
Under Notification 36/2023-CT, the operator "shall not allow any inter-State supply of goods through it" by a composition seller and collects the TCS itself.
What does composition change in the tax your store charges?
You stop charging GST to buyers and issue a bill of supply instead of a tax invoice. Section 10(4):
A taxable person to whom the provisions of sub-section (1) or, as the case may be, sub-section (2A) apply shall not collect any tax from the recipient on supplies made by him nor shall he be entitled to any credit of input tax.
You pay the tax yourself as a share of turnover, and what rate a composition dealer pays depends on whether you manufacture, trade, run a restaurant or supply services.
Shopify's India GST page, read October 9, 2026, doesn't mention the composition scheme; its example sets up CGST and SGST inside one state and IGST for the others — tax that section 10(4) bars a composition seller from collecting.
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