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CA India, official logo of the Institute of Chartered Accountants of IndiaCA (Dr) Aman SalujaChartered Accountant
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Composition scheme

A simplified compliance option for small taxpayers within notified turnover limits, with quarterly tax payment and an annual return.

Who may opt

Small taxpayers within the notified turnover limit (commonly up to ₹1.5 crore, with a lower limit in special-category States) may opt for composition, subject to conditions (no inter-State outward supplies of goods, no supply through e-commerce requiring TCS in many cases, etc.).

Tax rates (illustrative)

Composition tax is a fixed percentage of turnover (rates differ for manufacturers, traders, restaurants, and notified service providers). Confirm current rates in notifications.

Compliance

Pay tax via CMP-08 quarterly and file GSTR-4 annually. Composition dealers issue a bill of supply and cannot collect GST from customers or claim ITC.

Related: Due dates · Registration · Invoicing

This material is for general information. It is not a legal opinion. Verify due dates and rates on the GST portal and CBIC notifications before acting.