What is the GST composition scheme?

Name: Vijay R Singh & Co.
Address: Office No. 4, Vishal CHSL, D Wing, Sir Mathuradas Vasanji Road, Azad Nagar, Opp. Andheri Gymkhana, Andheri East, Maharashtra, 400069, IN
Telephone: +91 98607 23959

CA Vijay R Singh, FCA
Chartered Accountant · ICAI M.No. 153926 · FRN 136869W

Short answerThe composition scheme lets small businesses pay GST at a low flat rate on turnover — 1% for traders/manufacturers, 5% for restaurants, 6% for eligible service providers — with simpler quarterly filing. The trade-off: you can’t charge GST to customers or claim input credit.

How it works

You pay a small flat percentage of turnover and file quarterly CMP-08 with an annual GSTR-4 — much less paperwork.

The trade-offs

No input tax credit, you can’t collect GST from customers (it comes out of your margin), and you can’t supply inter-state. Confirm current rates.

GST

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This answer is general information for businesses, not tax advice. Tax rates, thresholds and forms change with each Finance Act — please confirm the current position for your own facts, or speak to us, before acting.