⚖️ Eligibility & Comparison Tool
GST Composition Scheme Calculator
Check if your business qualifies for the Composition Scheme and see your tax liability under both regular GST and composition rates — side by side.
Your Business Details
Regular GST
Per-invoice tax + monthly returns
Output GST ₹0
ITC Credit −₹0
Net Annual Payable ₹0
Effective rate on turnover 0%
Returns to file:
GSTR-1 (monthly/quarterly) + GSTR-3B (monthly)
Composition Scheme
Flat rate on turnover + quarterly returns
Composition Rate 1%
ITC Benefit None
Annual Tax Payable ₹0
Effective rate on turnover 1%
Returns to file:
GSTR-4 (annual) + CMP-08 challan (quarterly)
Frequently Asked Questions
What is the GST Composition Scheme?
The Composition Scheme is a simplified GST compliance option for small businesses. Instead of charging GST on each invoice and filing monthly returns, eligible businesses pay a flat tax rate on their annual turnover and file returns quarterly. It reduces paperwork significantly.
Who is eligible for the Composition Scheme?
Businesses with annual aggregate turnover up to ₹1.5 crore (₹75 lakh for special category states) can opt for the scheme. Service providers are generally ineligible, except restaurants. Businesses involved in inter-state supply, e-commerce, or manufacturing specified notified goods are also ineligible.
What are the composition tax rates?
The flat rates are: Manufacturers — 1% (0.5% CGST + 0.5% SGST); Traders (goods) — 1% on taxable turnover; Restaurants — 5% (2.5% CGST + 2.5% SGST). These rates are applied on total turnover (not per invoice).
Can composition dealers collect GST from customers?
No. Composition dealers cannot collect GST from customers and cannot issue a tax invoice. They pay the flat rate from their own pocket. They also cannot claim any Input Tax Credit.
What are the disadvantages of the Composition Scheme?
Key disadvantages: (1) Cannot claim ITC; (2) Cannot make inter-state sales; (3) Cannot supply through e-commerce operators; (4) Customers cannot claim ITC on purchases from you, making you uncompetitive with B2B clients who need ITC.