GST Composition Scheme Calculator
GST Payable: ₹0.00
Frequently Asked Questions (FAQs)
1. What is the GST Composition Scheme?
The GST Composition Scheme is a simplified tax scheme for small businesses with an annual turnover of up to ₹1.5 crore (₹75 lakh for North-Eastern states). It allows businesses to pay a fixed percentage of turnover as GST instead of following the regular GST compliance requirements.
2. How does this GST Composition Scheme Calculator work?
Our GST Composition Scheme Calculator helps you quickly estimate the GST payable based on your annual turnover and business type. Simply:
- Enter your annual turnover
- Select your business category
- Instantly view the GST payable
3. Who can apply for the GST Composition Scheme?
Small businesses with a turnover of up to ₹1.5 crore (or ₹75 lakh in special category states) engaged in trading, manufacturing, or restaurant services can opt for this scheme. However, businesses dealing in interstate sales, e-commerce, and non-taxable goods are not eligible.
4. What is the GST rate under the Composition Scheme?
The applicable GST rates vary by business type:
- Manufacturers & Traders – 1%
- Restaurants (not serving alcohol) – 5%
- Service Providers – 6%
5. What are the benefits of the GST Composition Scheme?
- Lower tax rates compared to the regular GST scheme
- Reduced compliance – No need to file monthly returns, only quarterly GST returns
- Simplified taxation – No input tax credit (ITC) claims or detailed invoice tracking
6. Can I claim Input Tax Credit (ITC) under the Composition Scheme?
No, businesses registered under the GST Composition Scheme cannot claim input tax credit (ITC) on purchases.
7. How do I register for the GST Composition Scheme?
You can apply online via the GST portal (www.gst.gov.in) by filing GST CMP-02 at the beginning of the financial year.
8. How accurate is the GST Composition Calculator?
Our GST Composition Calculator is designed to provide an accurate GST estimate based on your turnover. However, for precise calculations, always consult a tax professional.
9. Do I need to issue tax invoices under the Composition Scheme?
No, businesses under this scheme must issue bill of supply instead of a tax invoice, as they cannot charge GST separately on their sales.
10. How often do I need to file GST returns under this scheme?
Businesses in the GST Composition Scheme must file GSTR-4 (quarterly return) and GSTR-9A (annual return) on the GST portal.