GST Composition Scheme Calculator

Calculate your GST payable under the Composition Scheme and check your eligibility.

Your business details

Annual turnover: ₹50,00,000

Business type

My business is in a specified state (lower Rs 75L cap)

GST payable

Total GST payable

₹50,000

1% of turnover

CGST

₹25,000

SGST

₹25,000

Composition dealers cannot claim Input Tax Credit (ITC) and cannot charge GST separately to customers. You issue a Bill of Supply, not a tax invoice.

Frequently asked questions

Traders, manufacturers, restaurants (not serving alcohol), and certain service providers with an aggregate annual turnover up to Rs 1.5 crore, or Rs 75 lakh in specified states (Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, and Uttarakhand), can opt in.

Traders and manufacturers pay 1% since they typically have lower margins. Restaurants pay 5% and standalone service providers pay 6%, reflecting the different margin structures the CGST Act assumes for each category under Rule 7.

Under the regular GST scheme, you can offset the GST you paid on purchases against the GST you collect on sales. Composition dealers give up this benefit entirely in exchange for the simpler flat-rate payment and reduced compliance (quarterly returns instead of monthly).

No. Composition dealers cannot collect GST from customers or issue a tax invoice. You issue a Bill of Supply instead, and the GST you pay to the government comes out of your own margin, not a separate charge to the buyer.

You must switch to the regular GST scheme from the date your turnover crosses the threshold, and file Form GST CMP-04 within 7 days of becoming ineligible. You cannot continue on the composition rate for the rest of the year once you cross the cap.

No. Businesses that supply goods through e-commerce operators required to collect TCS, or that make inter-state outward supplies, are not eligible for the Composition Scheme regardless of turnover.

Related calculators

Figures are for FY 2025-26 and are for planning purposes only, not tax filing advice. Composition rates and eligibility thresholds are set by the CGST Act and may change, verify against the current year's rules before filing.

GST Composition Scheme Calculator

Calculate your GST payable under the Composition Scheme and check your eligibility.

Your business details

Annual turnover: ₹50,00,000

Business type

My business is in a specified state (lower Rs 75L cap)

GST payable

Total GST payable

₹50,000

1% of turnover

CGST

₹25,000

SGST

₹25,000

Composition dealers cannot claim Input Tax Credit (ITC) and cannot charge GST separately to customers. You issue a Bill of Supply, not a tax invoice.

Frequently asked questions

No. Businesses that supply goods through e-commerce operators required to collect TCS, or that make inter-state outward supplies, are not eligible for the Composition Scheme regardless of turnover.

Related calculators

GST Composition Scheme Calculator

Frequently asked questions

Who can opt for the GST Composition Scheme?

Why is the rate different for restaurants and service providers?

What does it mean that I can't claim Input Tax Credit (ITC)?

Can I charge GST to my customers under the Composition Scheme?

What happens if my turnover crosses the eligibility limit mid-year?

Can e-commerce sellers or inter-state suppliers use this scheme?

GST Composition Scheme Calculator

Frequently asked questions

Who can opt for the GST Composition Scheme?

Why is the rate different for restaurants and service providers?

What does it mean that I can't claim Input Tax Credit (ITC)?

Can I charge GST to my customers under the Composition Scheme?

What happens if my turnover crosses the eligibility limit mid-year?

Can e-commerce sellers or inter-state suppliers use this scheme?