# Persons Ineligible for Composition Scheme
## (a) Ineligible for Composition Scheme for GOODS [Section 10(2)]
A registered person is NOT eligible if he is:
1. Engaged in supply of goods or services not leviable to tax (e.g., petroleum, alcoholic liquor for human consumption).
2. Engaged in inter-State outward supplies of goods or services.
3. Person supplying any services through an E-Commerce Operator (ECO) required to collect TCS u/s 52.
4. Manufacturer of notified goods u/s 10(2)(e) — ice cream, pan masala, tobacco, aerated waters, fly ash bricks, bricks of fossil meals, building bricks, etc.
5. Casual Taxable Person (CTP) or Non-Resident Taxable Person (NRTP).
6. Supplier of services (except restaurant service permitted u/s 10(1) and marginal services permitted by the second proviso to 10(1)).
## (b) Ineligible for Composition Scheme for SERVICES [Section 10(2A)]
A registered person is NOT eligible if he is:
1. Engaged in supply of goods/services not leviable to tax.
2. Engaged in inter-State outward supplies of goods/services.
3. Person supplying any services through an ECO required to collect TCS u/s 52.
4. Manufacturer of notified goods or supplier of notified services.
5. CTP or NRTP.
## Quick Mnemonic
Common to both → "N-I-E-N-C"
- Non-leviable supplies
- Inter-State outward supplies
- ECO supplier (services through ECO with TCS)
- Notified goods/services
- CTP or NRTP