Compare your tax liability under Composition Scheme vs Regular GST — find out which saves you more
Select Your Business Type
🛒
Trader
1% on turnover
🏭
Manufacturer
2% on turnover
🍕
Restaurant
5% on turnover
💼
Service Provider
6% on turnover
Annual Turnover
₹
₹50L
Regular GST Parameters (for comparison)
₹
⚠️ Note: Composition dealers cannot claim ITC. Under Regular GST, ITC reduces your tax payable. This calculator shows the after-ITC tax for Regular GST comparison.
✅ Eligible for Composition Scheme. Your turnover is within the limit.
Composition Scheme
₹0
Rate: 1% on ₹50L turnover
★ Better Choice
Regular GST
₹0
After ITC deduction
★ Better Choice
Annual Savings with Composition Scheme
₹0
vs Regular GST (after ITC)
Detailed Tax Breakdown
Component
Composition
Regular GST
Tax Comparison Chart
Frequently Asked Questions
Who is eligible for GST Composition Scheme? +
Businesses with annual turnover up to Rs.1.5 crore (Rs.75 lakh for special category states) can opt for goods. Service providers are eligible up to Rs.50 lakh. Not eligible: ice cream/pan masala/tobacco manufacturers, inter-state suppliers, e-commerce operators.
What are the Composition Scheme tax rates? +
Traders: 1% (0.5% CGST + 0.5% SGST); Manufacturers: 2% (1%+1%); Restaurants (no alcohol): 5% (2.5%+2.5%); Service providers: 6% (3%+3%). Rates apply on total turnover.
Can a Composition dealer claim Input Tax Credit (ITC)? +
No. Composition dealers cannot claim ITC on purchases. This is the key trade-off. If your purchase costs are high, Regular GST with ITC may be cheaper overall. Use this calculator to compare.
What is the difference between Composition Scheme and Regular GST? +
Composition: flat low rate on turnover, simple quarterly returns, cannot collect GST from customers, no ITC. Regular GST: tax on value-added, monthly returns, can collect GST from customers, allows ITC. Composition suits small B2C businesses. Regular GST suits businesses with high purchase costs or B2B clients.
What returns does a Composition dealer file? +
Composition dealers file CMP-08 quarterly (tax statement) and GSTR-4 annually — much simpler than regular dealers who file GSTR-1 and GSTR-3B monthly. However, Composition dealers must print "Composition Taxable Person" on bills and cannot issue Tax Invoices.