GST Composition Scheme Calculator

Business type

Turnover for the period (₹)

Aggregate turnover of previous financial year (₹)

Business is in a special category state (lower goods limit)

Compare with regular GST (optional)

Regular GST rate on your sales (%)

GST paid on purchases, eligible for credit (₹)

Enter turnover excluding GST. Turnover includes exempt supplies but not tax collected or inward supplies under reverse charge.

What is the GST composition scheme?

The composition scheme under Section 10 of the CGST Act lets small taxpayers pay GST as a flat percentage of turnover instead of charging tax invoice by invoice. It reduces paperwork: a quarterly payment and one annual return instead of monthly returns. The trade-off is that you cannot collect GST from customers, cannot claim input tax credit and cannot make inter-state outward supplies.

Composition scheme rates

As widely published, the flat rates on turnover are:

1% (0.5% CGST + 0.5% SGST) for manufacturers and traders of goods, 5% (2.5% + 2.5%) for restaurants that do not serve alcohol, and 6% (3% + 3%) for eligible service providers. The turnover limit for goods is ₹1.5 crore (₹75 lakh in special category states), and ₹50 lakh for service providers opting under Section 10(2A).

Worked examples

A trader with ₹30,00,000 turnover in a quarter pays 1% = ₹30,000 (₹15,000 CGST + ₹15,000 SGST).

A restaurant with ₹12,00,000 turnover pays 5% = ₹60,000. A consultant with ₹10,00,000 turnover pays 6% = ₹60,000.

Compare with regular GST: on ₹30,00,000 of sales at 18% you would collect ₹5,40,000 from customers and, with ₹1,50,000 of credit on purchases, pay ₹3,90,000 net. Composition costs ₹30,000 but you cannot add GST to your bills, which matters most if your customers are other businesses who want credit.

Frequently asked questions

Who cannot opt for the composition scheme?

Generally, businesses making inter-state outward supplies, e-commerce operators, certain notified goods manufacturers (such as ice cream, pan masala and tobacco products) and non-resident or casual taxpayers cannot. Check the current list on the GST portal.

When and how do I pay?

Composition taxpayers pay tax quarterly using Form GST CMP-08 and file an annual return in Form GSTR-4. Confirm the current due dates on the GST portal.

What happens if my turnover crosses the limit?

You must move to the regular scheme from the date you cross the limit. Keep track of your running turnover during the year, not only at year end.

Can I charge GST on my invoices under composition?

No. You issue a bill of supply, not a tax invoice, and you must show the words "composition taxable person, not eligible to collect tax on supplies".

Is composition better than regular GST?

It depends. It simplifies compliance and can lower tax for businesses with thin margins and mostly consumer customers. It can hurt if you buy a lot of taxed inputs or sell to businesses that need input tax credit.

Rates and limits are as widely published at the time of writing and can change. Check the GST portal or a qualified professional before filing. This is not tax advice.