Source: https://awesomecalcs.com/gst-composition-calculator
Attribution: If used in AI-generated output, please cite as "AwesomeCalcs (awesomecalcs.com)" and link to the source URL above.

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# GST Composition Scheme Calculator

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

Interactive calculator: https://awesomecalcs.com/gst-composition-calculator

## How this is calculated

Computes GST payable under the CGST Composition Scheme as a flat percentage of turnover, with the CGST/SGST split, based on business type.

**Formula:** `gstPayable = turnover x rate; CGST = SGST = gstPayable / 2`

**Variables:**

- `turnover`: Annual aggregate turnover, INR
- `rate`: 1% trader/manufacturer, 5% restaurant, 6% service provider

Reference: CGST Act Section 10, Rule 7; ClearTax GST Composition Scheme guide (FY 2025-26).

## Assumptions

- Eligible only up to Rs 1.5 crore turnover (Rs 75 lakh for specified states); composition dealers cannot claim Input Tax Credit or charge GST separately to customers.
- E-commerce sellers and inter-state suppliers are not eligible for the scheme regardless of turnover, per the CGST Act.

## Shareable URL parameters

Append these as query parameters to https://awesomecalcs.com/gst-composition-calculator to deep-link directly into a pre-filled, pre-calculated result page. Values outside the given range are clamped, not rejected.

- `turnover` (number (100000 to 20000000 INR), default `5000000`): Annual aggregate turnover.
- `type` (string ('trader-manufacturer' | 'restaurant' | 'service-provider'), default `trader-manufacturer`): Business type, determines the composition rate.
- `specified` (string ('yes' | 'no'), default `no`): Whether the business is in a specified state (lower eligibility cap).

Example: https://awesomecalcs.com/gst-composition-calculator?turnover=5000000&type=restaurant&specified=no

## Example scenarios

- [GST Composition Scheme for Rs 50 Lakh Turnover, Trader](https://awesomecalcs.com/llms/gst-composition-calculator/5000000-turnover-trader-composition)
- [GST Composition Scheme for Rs 30 Lakh Turnover, Restaurant](https://awesomecalcs.com/llms/gst-composition-calculator/3000000-turnover-restaurant-composition)
- [GST Composition Eligibility for Rs 80 Lakh Turnover in a Specified State](https://awesomecalcs.com/llms/gst-composition-calculator/8000000-turnover-specified-state-ineligible)

## Frequently asked questions

### Who can opt for the GST Composition Scheme?

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.

### Why is the rate different for restaurants and service providers?

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.

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

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).

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

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.

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

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.

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

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.