What is the GST rate under the Composition Scheme?

Composition rates are: Manufacturers — 1% of turnover (0.5% CGST + 0.5% SGST). Traders (goods only) — 1% of turnover. Restaurants not serving alcohol — 5% of turnover (2.5% CGST + 2.5% SGST). Service providers under special composition (Section 10(2A)) — 6% of turnover (3% CGST + 3% SGST). The tax is paid entirely by the supplier — it cannot be collected from customers.

What is CMP-08 and when is it due?

CMP-08 is the quarterly statement-cum-challan filed by composition taxpayers to pay their GST liability. It is due by the 18th of the month following each quarter: Q1 (Apr-Jun) by 18th July, Q2 (Jul-Sep) by 18th October, Q3 (Oct-Dec) by 18th January, Q4 (Jan-Mar) by 18th April. The annual return GSTR-4 is filed by 30th April.

Can a composition dealer collect GST from customers?

No. A composition dealer cannot collect GST from customers and cannot issue a tax invoice. Instead, they must issue a Bill of Supply. The composition tax is borne by the dealer from their own funds — it is not chargeable to the customer.

What is the turnover limit for composition scheme?

The aggregate annual turnover threshold for the regular composition scheme is ₹1.5 crore (₹75 lakh for special category states). For service providers under Section 10(2A), the limit is ₹50 lakh. Turnover includes all supplies under the same PAN — even those from other states or exempt supplies.

Composition Scheme Tax Calculator

Calculate your exact GST liability and CMP-08 quarterly payments under the Composition Scheme for FY 2026-27.

Taxpayer Details

Taxpayer Type

🛍️ Trader
Goods — 1%

🏭 Manufacturer
Goods — 1%

🍽️ Restaurant
Food — 5%

⚙️ Service Provider
Sec 10(2A) — 6%

Annual Turnover (₹)

Limit: ₹1.5 crore | State: ₹75 lakh for special category states

Input Tax Credit on Purchases (₹/year)

⚠ Composition dealers cannot claim ITC — enter for regular vs composition comparison

Annual Tax Liability

GST Rate—

Annual Turnover—

CGST (50%)—

SGST (50%)—

Total Tax Payable—

Quarterly CMP-08 Payments

Q1 Apr–Jun

—

Due 18 Jul

Q2 Jul–Sep

—

Due 18 Oct

Q3 Oct–Dec

—

Due 18 Jan

Q4 Jan–Mar

—

Due 18 Apr

Regular Scheme vs Composition Comparison

Composition Scheme

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Tax on turnover. No ITC.

Regular Scheme

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GST on sales minus ITC on purchases.

Composition Scheme Rates at a Glance

Taxpayer Type	Total Rate	CGST	SGST	Turnover Limit
Manufacturers (goods)	1%	0.5%	0.5%	₹1.5 crore
Traders (goods only)	1%	0.5%	0.5%	₹1.5 crore
Restaurants (no alcohol)	5%	2.5%	2.5%	₹1.5 crore
Service providers (Sec 10(2A))	6%	3%	3%	₹50 lakh
Special category states (goods)	1%	0.5%	0.5%	₹75 lakh

Frequently Asked Questions

Composition tax = Aggregate annual turnover × Applicable rate. The rate depends on the taxpayer type: 1% for traders/manufacturers, 5% for restaurants, 6% for service providers under Section 10(2A). The tax is split equally between CGST and SGST. There is no IGST under composition — composition taxpayers cannot make interstate supplies.

Yes. You can opt for the composition scheme at the beginning of a financial year by filing Form CMP-02 on the GST portal before 31st March. The switch takes effect from 1st April. If you switch during the year after having claimed ITC, you must reverse all ITC on the closing stock as on the date of switching, using Form ITC-03.

If your aggregate turnover exceeds ₹1.5 crore (₹50 lakh for service providers) during the financial year, you must file Form CMP-04 to withdraw from the composition scheme within 7 days of the date when the threshold was crossed. From that date, you must file regular returns (GSTR-1 and GSTR-3B) and can start claiming ITC.

No. Composition taxpayers cannot make interstate (inter-state) taxable supplies. They can only supply within the state. They also cannot supply through e-commerce operators (like Amazon, Flipkart). Violation of these conditions results in cancellation of composition status and demand of full GST with penalty.