COMPOSITION SCHEME

Turnover limit in Preceding Financial Year

For Northeast states (except Assam,

Uttrakhand), Turnover should not exceed Rs.75
lacs.

For other states, turnover should not exceed

Rs.1.5 crore.
Registered
Person

Not engaged in supply of goods and services

both other than restaurant, catering/canteen,
mandap services.

Suppliers having annual Not engaged in supply of non taxable

turnover in preceding FY upto
supply(supply which is outside scope of GST
Rs.50 lakhs and engaged in
such as petrol, liquor.)
supplying exclusively services,
can opt for optional scheme
with tax rate of 6% (3% CGST
+ 3% SGST) Not engaged in inter state supply of goods.

Not engaged in supply of goods through

ecommerce operator.

Not engaged in manufacture of goods notified by

GST council. E.g. – Pan masala, Tobacco, ice
cream, Aerated Water.

Turnover means aggregate of all taxable supplies (excluding the value of inward supplies on which tax is
payable by person in RCM), exempt supplies, export of goods or services or both, interstate supply having
same PAN.
Rate of tax in case of composition levy:

Category Rate of Tax

Restaurant, Outdoor catering services 5% of Turnover ( 2.5% CGST

and 2.5% SGST)

Others 1%( 0.5% CGST and 0.5%

SGST)

1% of Turnover (Manufacturer)

1% of taxable turnover (Trader)

Notes:

1) Person opts for composition scheme shall not collect tax from customer/recipient for
supplies made by him. Further he shall not be entitled for any input tax credit(ITC).
2) If one registered person having branches in many states then he has to apply for
composition scheme for all branches.
3) Composition scheme shall be lapsed from the day when conditions specified on page
no. 28 violated.
4) Every person opted for composition scheme shall furnish statement every quarter containing the
details of self assessed tax in Form GST CMP-08 on or before 18th of month following by quarter.
5) Every person opted for composition scheme shall furnish return for every financial year in Form
GST-4 on or before of 30th April following the end of financial year.
6) Incase of new registration, you can opt for composition scheme while applying for Form GST Reg-
01.
7) Incase of shift from regular to composition tax payer, person shall file Form GST CMP-02 within
30 days from financial year. He shall also furnish Form GST ITC-03 within 60 days from financial
year.