Dealers with aggregate turnover of less than Rs. 1 crores in the preceding year are eligible to opt for the scheme. The turnover limit is Rs. 75 lakhs for some States namely Arunachal Pradesh, Assam, Himachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura
Further, if in middle of a Financial year the dealer crosses the threshold limit, as applicable. The option to pay tax under composition scheme lapses from the very day on which the aggregate turnover crosses Rs.1 crores or Rs. 75 lakhs, as applicable. An intimation is required to be filed in Form CMP-04 within 7 days from the day on which threshold limit is crossed.