What is Composition Scheme under GST:

In GST there are too many formalities under various scheme except Composition scheme.Composition scheme is a scheme which is very useful to the taxpayers who's turnover is below 75 Lacs. Composition scheme is beneficial specially for the small tax payers only.

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The followingare the main Key Features of Composition scheme:-

1.Turnover must be below Rs. 75 lakhs (Rs.50 Lakhs for North-Eastern States)

2. The dealer who opting Composition scheme is not eligible for Input Tax Credit .

3.Composition Scheme is only for Intra-State supplies.

4.In Composition scheme Tax rates are fixed on total sales turnover.

5.In Composition Scheme the periodicity of filling of Return is Quarterly not Monthly.

6.Composition dealer need not to issue Tax Invoice

7.Composition Dealer need not to maintain records.

The Tax Rates under Composition Scheme are fixed as per the chart below:

Type of Activity	CGST %	SGST/UTGST	Total  %
Manufacturer	1.00	1.00	2.00
Restaurant	2.50	2.50	5.00
Traders	0.50	0.50	1.00

The person registered under composition scheme shall at the top of the bill of supply issued by him, 

mention the words- “not eligible to collect tax on supplies”,because the composite taxpayer is not

eligible to collect tax on the supplies.