GST Composition Scheme

A simplified GST option for small businesses to pay tax at a low flat rate on turnover with minimal compliance.

The Composition Scheme lets eligible small businesses pay GST at a fixed percentage of turnover instead of the normal rates, with simpler quarterly payments and fewer returns.

In exchange, composition dealers cannot collect GST from customers at normal rates, cannot claim input tax credit, and cannot make inter-state outward supplies. It suits small local businesses that sell mostly to end consumers.

• Low flat rate on turnover (e.g. 1% for traders, 5% for restaurants — verify current rates).
• No input tax credit; cannot charge GST separately on the bill.
• Eligibility capped by an annual turnover limit.