About the GST Composition Check
The composition scheme lets small taxpayers pay GST as a small flat percentage of turnover with quarterly payments and a single annual return, instead of charging GST on every invoice and claiming input credit. Traders and manufacturers with aggregate turnover up to ₹1.5 crore (₹75 lakh in the special-category states) pay 1 %; restaurants pay 5 %; service providers up to ₹50 lakh pay 6 % under section 10(2A).
Some businesses cannot opt in: those making inter-state outward supplies, selling through an e-commerce operator that collects TCS, supplying goods not leviable to GST, and goods dealers whose services exceed 10 % of turnover or ₹5 lakh. A composition dealer cannot charge GST to customers or claim input credit, and must print 'composition taxable person' on every bill of supply.
This checker applies the limits and conditions to your answers and shows the tax you would pay on turnover, so you can weigh it against the input credit you would forgo.
How to use it
- 1Enter your aggregate annual turnover (all GSTINs under the PAN).
- 2Say what you supply — goods, restaurant service, other services or a mix — and whether you are in a special-category state.
- 3Answer the questions on inter-state supplies, e-commerce and non-taxable goods.
- 4Read the verdict, the reasons if not eligible, the composition rate and the tax on turnover.
How this is calculated
Eligible when turnover ≤ the limit for your category and none of the disqualifying conditions applies Tax = turnover × composition rate (1 % traders / manufacturers, 5 % restaurants, 6 % services)
Rates used
- GST composition limit — goods (general states)1,50,00,000 ₹ aggregate turnover · CGST Act s.10 / notifications · verified 2026-09-25 · owner to confirm
- GST composition limit — special-category states75,00,000 ₹ aggregate turnover · CGST Act s.10 · verified 2026-09-25 · owner to confirm
- GST composition limit — services (s.10(2A))50,00,000 ₹ aggregate turnover · CGST Act s.10(2A) · verified 2026-09-25 · owner to confirm
- Composition rate — traders / manufacturers1 % of turnover (0.5 + 0.5) · CGST Rules r.7 · verified 2026-09-25 · owner to confirm
- Composition rate — restaurants5 % of turnover · CGST Rules r.7 · verified 2026-09-25 · owner to confirm
- Composition rate — services (s.10(2A))6 % of turnover · CGST Rules r.7 · verified 2026-09-25 · owner to confirm
Frequently asked questions
Is composition better for me?
Compare the 1 % (or 5 % / 6 %) on turnover with the GST you would pay under the regular scheme net of input credit. Businesses with high-value inputs and B2B customers who want credit usually lose under composition; small B2C traders and restaurants usually gain.
Can I sell on Amazon or Flipkart under composition?
Not if the operator is required to collect TCS on your sales — that disqualifies you. Some smaller platforms are not TCS operators; check the platform's status.
What are the special-category states?
Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura and Uttarakhand have the ₹75 lakh goods limit. Assam, Himachal Pradesh and Jammu & Kashmir opted for ₹1.5 crore.
How do I opt in?
File Form CMP-02 on the GST portal before the start of the financial year (or with registration). Pay tax quarterly in CMP-08 and file the annual GSTR-4.