GST Composition Scheme Calculator (India)

GST Composition Scheme Calculator – Simplify Small-Business Compliance

Small businesses in India with eligible turnover under ₹1.5 crore (₹75 lakh in special category states) can opt for the simplified GST Composition Scheme. This allows them to pay GST at a fixed low percentage on turnover, file quarterly returns, and avoid complex bookkeeping. Our calculator helps you instantly estimate your tax liability and quarterly payments under the scheme.

Who is Eligible?

To use this scheme, you must:

  • Have aggregate annual turnover within ₹1.5 crore (₹75 lakh for NE/Himachal/Uttarakhand etc.)
  • Be a manufacturer, trader, service provider (services limited to ≤₹50 lakh per year), or a restaurant (non-alcoholic) :contentReference[oaicite:1]{index=1}
  • Not supply interstate, exempted, reverse-charge, e‑commerce taxable supplies, or excluded items like pan masala/tobacco/ice cream :contentReference[oaicite:2]{index=2}

How the Tax Is Applied

Depending on your business type, the Composition Scheme tax rates are:

  • Manufacturer/Trader: 1% of annual turnover (0.5% CGST + 0.5% SGST) :contentReference[oaicite:3]{index=3}
  • Restaurant (non-alcoholic): 5% (2.5% + 2.5%) :contentReference[oaicite:4]{index=4}
  • Service Provider: 6% (3% + 3%) :contentReference[oaicite:5]{index=5}

Benefits of Composition Scheme

  • ✔️ Lower tax burden due to fixed low rates
  • ✔️ Easier compliance with quarterly tax payment (CMP‑08) and annual return (GSTR‑4) :contentReference[oaicite:6]{index=6}
  • ✔️ Avoidance of intricate tallying, item-level invoices, and excess paperwork

Using This Calculator

  1. Enter your projected or actual annual turnover (₹)
  2. Select your business category (manufacturer, restaurant, or service)
  3. Calculator displays GST payable and quarterly cost breakdown
  4. Check doughnut chart for visual comparison of GST vs net turnover

Compliance Tips

  • Opt-in via portal form CMP‑02 before March 31 each financial year :contentReference[oaicite:7]{index=7}
  • File CMP‑08 each quarter by the 18th following quarter end :contentReference[oaicite:8]{index=8}
  • File annual GSTR‑4 return by April 30 of next FY :contentReference[oaicite:9]{index=9}
  • Be sure not to exceed turnover thresholds; revert to regular GST if needed

FAQs – GST Composition Scheme Calculator

1. Who can opt for the GST Composition Scheme?

Businesses with turnover up to ₹1.5 crore (₹75 lakh in special states); includes manufacturers, traders, restaurants, and limited service providers under ₹50 lakh turnover :contentReference[oaicite:10]{index=10}.

2. What are the current composition tax rates?

1% for manufacturers/traders, 5% for restaurants (non-alcohol), 6% for eligible service providers :contentReference[oaicite:11]{index=11}.

3. How often is GST paid under this scheme?

GST is paid quarterly through CMP‑08 by the 18th of the month following each quarter. Annual GSTR‑4 return is filed by April 30 next year :contentReference[oaicite:12]{index=12}.

4. Can I claim input tax credit under Composition Scheme?

No. Composition dealers cannot claim ITC, and buyers cannot claim credit for purchases made from them :contentReference[oaicite:13]{index=13}.