Features of Composition
Scheme
1. A dealer is eligible for composition scheme if his annual turnover is
i) Less than Rs75 lakhs in goods (For HP and north eastern states)
ii) Less than Rs1.5 crore in goods (for other states)
iii) Less than Rs 50 lakhs in services
2. GST rates under Composition scheme
i) For Manufacturers and other suppliers 1%
ii) For supplier of food and Non- alcoholic drinks 5%
iii) For Service Providers 6%
3. Dealer cannot claim input tax credit
4. He cannot make interstate sale
5. He cannot collect GST from his customers
6. He can only issue “bill of supply” to his customers
7. He does not have to maintain detail books of accounts
8. He has to pay GST at a normal rate to the government under Reverse
charge mechanism.
9. He pays GST Quarterly
10. He files Quarterly Statement cum Challan CMP-08 and Annual return
GSTR-4.
Scheme
1. A dealer is eligible for composition scheme if his annual turnover is
i) Less than Rs75 lakhs in goods (For HP and north eastern states)
ii) Less than Rs1.5 crore in goods (for other states)
iii) Less than Rs 50 lakhs in services
2. GST rates under Composition scheme
i) For Manufacturers and other suppliers 1%
ii) For supplier of food and Non- alcoholic drinks 5%
iii) For Service Providers 6%
3. Dealer cannot claim input tax credit
4. He cannot make interstate sale
5. He cannot collect GST from his customers
6. He can only issue “bill of supply” to his customers
7. He does not have to maintain detail books of accounts
8. He has to pay GST at a normal rate to the government under Reverse
charge mechanism.
9. He pays GST Quarterly
10. He files Quarterly Statement cum Challan CMP-08 and Annual return
GSTR-4.
