Composition scheme in brief
Traders and manufacturers with turnover up to ₹1.5 crore can opt for composition. Traders pay 1% of turnover, file CMP-08 quarterly and GSTR-4 annually. Restaurants not serving alcohol pay 5%.
What you give up
You cannot collect GST on invoices, cannot claim input tax credit, cannot make inter-state sales of goods and cannot sell through most e-commerce operators.
Who benefits
Neighbourhood shops selling mainly to consumers, with low input credit, usually save tax and effort under composition.
Who should stay regular
Shops that buy mostly from GST-registered suppliers, sell to businesses, sell online or across states, or plan to grow quickly are often better off under regular GST.
We'll run the numbers
Share last year's sales and purchases, and we'll compare your tax under both schemes.
This article is general information, not legal advice. Rules change; contact us for advice on your situation.