GST Composition Scheme: Definition, Meaning & Guide for Indian Businesses

A simplified GST scheme for small businesses with turnover up to 1.5 crore. Pay a flat percentage of turnover instead of regular GST.

What is GST Composition Scheme?

GST Composition Scheme is for small businesses with annual turnover up to 1.5 crore (75 lakh for special category states). Pay a flat percentage of turnover: 1 percent for traders and manufacturers, 5 percent for restaurants, 6 percent for other service providers. You cannot collect GST from customers, claim ITC, or make inter-state supplies. File quarterly statement (CMP-08) and annual return (GSTR-4).