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TENDERNTPC

NTPC Vindhyachal Launches In-House Digital Safety System 'SWIKRITI' - PSU Connect

NTPC Vindhyachal Launches In-House Digital Safety System 'SWIKRITI' PSU Connect

5h agoRead
NTPCNTPC News

NTPC Vindhyachal Procurement Notice

Invitation for bids for civil works at Stage V expansion project.

2d ago
NCLNCL Updates

NCL Jayant Mine Coal Transport Tender

Tender released for coal transportation from Jayant OCP to Railway Siding.

3d ago
MCAMCA

Free Download ROC Return Filing Software for FY 2025-26 - SAG Infotech Official Tax Blog

Free Download ROC Return Filing Software for FY 2025-26 SAG Infotech Official Tax Blog

4d agoRead
TENDERNCL

Coal India Inter-Company Table Tennis Tournament Hosted by NCL Kicks Off in Grand Style - Indian PSU

Coal India Inter-Company Table Tennis Tournament Hosted by NCL Kicks Off in Grand Style Indian PSU

6 JanRead
GSTGST

Government Notifies Retail Sale Price–Based Valuation under GST for Pan Masala, Tobacco and Cigarett

Government Notifies Retail Sale Price–Based Valuation under GST for Pan Masala, Tobacco and Cigarette Products w.e.f. 1st February 2026 A2Z Taxcorp LL...

1 JanRead
MCAMCA

All Due Dates of ROC Annual Return Filing for FY 2024-25 - SAG Infotech Official Tax Blog

All Due Dates of ROC Annual Return Filing for FY 2024-25 SAG Infotech Official Tax Blog

30 DecRead
STARTUPStartup

India startup funding hits $11B in 2025 as investors grow more selective - Yahoo Finance

India startup funding hits $11B in 2025 as investors grow more selective Yahoo Finance

27 DecRead
ITRIncome Tax

Got an SMS from Income Tax dept about tax returns? CBDT issues a statement | India News - Hindustan

Got an SMS from Income Tax dept about tax returns? CBDT issues a statement | India News Hindustan Times

24 DecRead
TENDERNTPC

NTPC Invites Tenders for Biennial Maintenance of C&I Systems at Vindhyachal Power Station - Indian M

NTPC Invites Tenders for Biennial Maintenance of C&I Systems at Vindhyachal Power Station Indian Masterminds

22 DecRead
MCAMSME

Brief Procedure of MSME Registration in India with Benefits - SAG Infotech Official Tax Blog

Brief Procedure of MSME Registration in India with Benefits SAG Infotech Official Tax Blog

2 DecRead
MCAMCA

ICSI Requests MCA to Introduce “Company Law and LLP Law Settlement Scheme, 2025” - Taxscan

ICSI Requests MCA to Introduce “Company Law and LLP Law Settlement Scheme, 2025” Taxscan

12 NovRead
ITRIncome Tax

CBDT extends last dates for Income Tax audit report and ITR filing: All you need to know - Upstox

CBDT extends last dates for Income Tax audit report and ITR filing: All you need to know Upstox

29 OctRead
MSMEMSME

Top Government Business Loan Schemes for MSMEs in India - Airtel

Top Government Business Loan Schemes for MSMEs in India Airtel

16 OctRead
MSMEMSME

2025 MSME Government Schemes Every Indian Business Should Know - Local Samosa

2025 MSME Government Schemes Every Indian Business Should Know Local Samosa

18 SeptRead
GSTGST

GST rejig: No input tax credit for insurers on brokerage, CBIC clarifies - Business Standard

GST rejig: No input tax credit for insurers on brokerage, CBIC clarifies Business Standard

16 SeptRead
TENDERTender

Adani Ports, Vedanta, Essar Ports compete for Tuna multipurpose cargo berth tender - Maritime Gatewa

Adani Ports, Vedanta, Essar Ports compete for Tuna multipurpose cargo berth tender Maritime Gateway

5 JunRead
TENDERUP Tender

Foreign suppliers to get a slice of India’s govt procurement market GeM to start global tendering -

Foreign suppliers to get a slice of India’s govt procurement market GeM to start global tendering The Financial Express

19 MayRead
TENDERUP Tender

BJP, JDS allege Rs 15,568 crore scam in Karnataka smart meter procurement; demand tender cancellatio

BJP, JDS allege Rs 15,568 crore scam in Karnataka smart meter procurement; demand tender cancellation The New Indian Express

26 MarRead
TENDERMP Tender

Easy Trip Planners Wins Madhya Pradesh’s First Inter-City Electric Bus Tender - India Infoline

Easy Trip Planners Wins Madhya Pradesh’s First Inter-City Electric Bus Tender India Infoline

24 FebRead
TENDERMP Tender

Madhya Pradesh Issues Tender for 1500 MW Solar Projects Under PM KUSUM-C - Energetica India Magazine

Madhya Pradesh Issues Tender for 1500 MW Solar Projects Under PM KUSUM-C Energetica India Magazine

19 FebRead
STARTUPMP Tender

IT park cum startup coming up in Madhya Pradesh - Construction Week India

IT park cum startup coming up in Madhya Pradesh Construction Week India

18 FebRead

GST Composition Scheme: Benefits for Small Traders

कंपोजिशन स्कीम — छोटे व्यापारियों के लिए

8 min read
5 December 2024

GST Composition Scheme — Is It Right for You?

The Composition Scheme is a simplified GST option for small businesses. Here is everything you need to decide.

Eligibility Criteria

  • Turnover up to ₹1.5 crore (₹75 lakh for some states)
  • Only for traders, manufacturers, restaurants
  • No interstate sales
  • No e-commerce sales

Tax Rates Under Composition

Business TypeTax Rate
Traders1% (0.5% CGST + 0.5% SGST)
Manufacturers1%
Restaurants5%
Service providers6%

Benefits of Composition

  • 1. Lower tax rate — Pay only 1%
  • 2. Quarterly returns — CMP-08 every quarter
  • 3. No invoice-wise data — Summary filing
  • 4. Less compliance — No e-way bill for most
  • 5. Simple accounting — Total turnover based
  • Limitations

    • Cannot collect GST from customers
    • Cannot claim ITC on purchases
    • No interstate supply
    • No e-commerce
    • Must mention "Composition Dealer" on invoices

    Who Should Opt?

    Good for:

    • Local retailers
    • Small manufacturers
    • Restaurants without interstate operations
    • Businesses with few purchases

    Not good for:

    • Interstate traders
    • E-commerce sellers
    • Exporters
    • B2B with GST-registered buyers

    How to Opt via Tally

  • 1. Get composition registration on GST portal
  • 2. Configure company as composition in Tally
  • 3. Invoices auto-marked "Composition Dealer"
  • 4. CMP-08 generated quarterly
  • Frequently Asked Questions

    Can I switch from regular to composition?
    Yes, at start of financial year. You must reverse ITC on stock and capital goods.
    Is composition good for B2B business?
    Generally no, because buyers cannot claim ITC on your supplies. Best for B2C businesses.