Small businesses having annual turnover less than Rs. 75 lakhs can opt for Composition scheme.
Composition dealers will pay nominal tax rates based on the type of business:
Composite Scheme - Applicable to GST Rates
|Type of Business||CGST||SGST||Total Tax|
|Traders ( Goods )||0.5%||0.5%||1%|
|Suppliers for Food & Drinks for Human Consumption||2.5%||2.5%||5%|
Service Provides - Cant Opt for Composition Scheme
- Composition dealers are required to file only One quarterly return (instead of three monthly returns filed by normal tax payers).
- They cannot issue taxable invoices, i.e., collect tax from customers and are required to pay the tax out of their own pocket.
- Businesses that have opted for Composition Scheme cannot claim any input tax credit.
Composition scheme is Not applicable to :
- Service providers
- Inter-state sellers
- E-commerce sellers
- Supplyier of non-taxable goods
- Manufacturer of Notified Goods
Buy GST Plan :