What is GST Composition Scheme?
Simplified GST compliance for small businesses. Pay fixed percentage of turnover as tax and file one quarterly return instead of monthly returns.
Eligibility
- Manufacturers and traders: Turnover up to Rs.1.5 crore
- Restaurants (not serving alcohol): Up to Rs.1.5 crore
- Service providers: Up to Rs.50 lakh
Tax Rates
- Manufacturers and traders: 1% of turnover
- Restaurants: 5% of turnover
- Service providers: 6% of turnover
Benefits
- Reduced tax burden -- pay only on turnover
- One quarterly return CMP-08
- Annual return GSTR-4 only
Restrictions
- Cannot collect GST from customers
- Cannot claim Input Tax Credit
- Cannot make inter-state supplies
How to Opt In
File Form CMP-02 on GST portal before April 1. Effective from April 1 of that year.
MyCamate advises and registers composition scheme for small businesses