GST Composition Scheme Calculator
Statutory eligibility evaluator and concessional tax estimator under Section 10 of CGST Act (1% for Goods, 5% for Restaurants, 6% for Services)
Composition Scheme Form
Special Category 8 States: Arunachal, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Uttarakhand (₹75L Limit). All other States/UTs: ₹1.50 Cr.
Per Rule 7 amendment: Traders pay 1% composition tax ONLY on Taxable Turnover (exempt supplies are excluded from tax calculation).
Statutory Scheme Parameter SummarySection 10(1) & 10(2)
Regular GST vs Composition Scheme Comparison
| Parameter | Composition Scheme (Section 10) | Regular GST Scheme |
|---|---|---|
| Tax Rate | Flat 1% (Goods), 5% (Restaurants), 6% (Services) | Standard slabs: 5%, 12%, 18%, 28% |
| Input Tax Credit (ITC) | No ITC available (Sec 10(4)) | Full ITC on eligible inputs/services |
| Tax Collection on Invoice | Cannot collect tax; issues Bill of Supply | Collects GST on Tax Invoice from customer |
| Inter-State Outward Supply | Strictly Prohibited | Permitted (IGST) |
| Periodic Compliance | Quarterly payment (CMP-08) & Annual return (GSTR-4) | Monthly/Quarterly GSTR-1 & GSTR-3B |
Traders & Manufacturers
Traders pay 0.5% CGST + 0.5% SGST strictly on Taxable Turnover. Manufacturers pay 1% on total turnover in State.
Restaurants & Food Services
Restaurants and outdoor caterers not serving alcohol pay 2.5% CGST + 2.5% SGST on total turnover in the State.
Service Providers (Sec 10(2A))
Pure service providers with turnover up to ₹50 Lakhs pay 3% CGST + 3% SGST on total turnover in the State.
Legal Basis & Statutory Authorities
Primary composition scheme for manufacturers, traders, and restaurants with ₹1.50 Cr / ₹75L turnover threshold.
Concessional 6% composition scheme for service providers and mixed suppliers up to ₹50 Lakhs turnover.
Prescribes rates and bases: 1% on taxable turnover for traders, 1% on total turnover for manufacturers, 5% for restaurants.
Frequently Asked Statutory Questions (FAQs)
The GST Composition Scheme under Section 10 of the CGST Act is a simplified, concessional tax mechanism designed for small taxpayers. It allows eligible businesses with turnover below prescribed thresholds (₹1.50 Cr for goods / ₹50L for services) to pay tax at flat nominal rates (1%, 5%, or 6%) with minimal compliance burdens.
Statutory Disclaimer: This calculator provides an indicative estimate based on the information entered and the GST provisions selected. Eligibility for the Composition Scheme, applicable turnover limits, rates, restrictions and tax liability may depend on the nature of business, supplies, registration structure, tax period, notifications and other facts. This tool does not constitute a GST opinion or professional advice.
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Professional GST Legal & Compliance Services
Expert assistance for opting into or out of the Composition Scheme (CMP-02 / CMP-04), quarterly CMP-08 filing, and annual GSTR-4 compliance.
Legal representation before Appellate Authorities and GST Appellate Tribunal (GSTAT) for demand notices and threshold disputes.
Need Professional Assistance with Departmental Filings, Notices, or Tax Planning?
Calculations provide indicative statutory estimates. For departmental filings, notice resolution, and custom tax planning, consult directly with SKM LAWS AND ASSOCIATES.