GST Composition Scheme Calculator

Compare Regular GST vs Composition Scheme to find the best option for your business

Annual Turnover (₹)

Business Type

Average GST Rate on Your Products/Services

Input Tax Credit Eligible % % of output tax you can claim as ITC in regular scheme

⚠️ Composition Scheme Limits: The composition scheme is available only if the aggregate turnover does not exceed ₹1.5 Crore (₹75 Lakh for special category states). E-commerce operators and casual taxable persons are NOT eligible. Service providers (except restaurants) can opt for composition under Section 10(2A) with 6% rate.

About GST Composition Scheme Calculator

The GST Composition Scheme Calculator helps small taxpayers determine their tax liability under the Composition Scheme as outlined in Section 10 of the CGST Act. This scheme is designed for small businesses with annual turnover up to ₹1.5 crore (₹75 lakh for special category states), offering simplified compliance with lower tax rates ranging from 1% to 6% depending on the business type. Instead of regular GST filing, composition dealers file a single quarterly return (CMP-08) and pay tax at fixed rates.

The Composition Scheme is particularly beneficial for small traders, manufacturers, and restaurant owners who want to reduce their compliance burden. Under this scheme, businesses pay tax at a nominal rate — 1% for traders, 2% for manufacturers, and 5% for restaurant services — on their total turnover. However, composition dealers cannot issue tax invoices, cannot claim ITC, and cannot make inter-state supplies. Our calculator helps you compare regular GST vs Composition Scheme to make an informed decision for FY 2026-27.

Key Features

Calculate tax liability under all Composition Scheme categories
Compare regular GST vs Composition Scheme savings
Eligibility check based on turnover thresholds
Quarterly payment computation (CMP-08)
Updated for FY 2026-27 with latest rates and limits

Frequently Asked Questions

What is the GST Composition Scheme turnover limit for FY 2026-27?

The GST Composition Scheme turnover limit is ₹1.5 crore for most states and ₹75 lakh for special category states (North-Eastern states, Himachal Pradesh, Uttarakhand, and J&K). This limit applies to aggregate turnover including exempt supplies but excluding GST. Service providers (except restaurants) are generally not eligible, though a special composition scheme under Section 10(2A) exists with a ₹50 lakh limit and 6% rate.

Can a composition dealer make inter-state supplies?

No, a registered person under the Composition Scheme cannot make inter-state (inter-state) supplies of goods. If you need to sell goods outside your state, you must opt out of the Composition Scheme and register under the regular GST regime. However, you can purchase goods from other states for your business use.

What are the GST composition rates for different businesses?

The composition tax rates are: 1% (0.5% CGST + 0.5% SGST) for traders dealing in goods, 2% (1% CGST + 1% SGST) for manufacturers of goods, and 5% (2.5% CGST + 2.5% SGST) for restaurant services. Service providers (other than restaurants) can opt for the special composition scheme at 6% on turnover up to ₹50 lakh.

How do I file returns under the Composition Scheme?

Composition dealers need to file CMP-08 (quarterly statement) by the 18th of the month following each quarter to pay tax, and GSTR-4 (annual return) by April 30 of the following financial year. This is significantly simpler than the regular GST regime which requires monthly GSTR-3B and GSTR-1 filings.

Can I claim ITC under the GST Composition Scheme?

No, Input Tax Credit (ITC) cannot be claimed under the Composition Scheme. Composition dealers must bear the GST paid on their purchases as a cost. This is one of the key trade-offs — lower tax rates and simpler compliance, but no ITC benefit. If your purchases involve significant GST, the regular scheme might be more beneficial despite higher compliance requirements.

GST Composition Scheme Calculator