Composition Scheme under GST

The composition scheme is a simple and straightforward scheme under GST for traders. Small taxpayers can get rid of cumbersome GST paperwork and pay GST at a fixed rate of turnover. This scheme can be chosen by any taxpayer whose turnover is less than Rs. 1.5 crore. A taxpayer whose turnover is less than Rs. 1.5 crore can opt for the composition scheme. For the northeastern states and Himachal Pradesh, the limit is now Rs. 75 lakhs. To calculate the turnover in the sense of the composition scheme , the turnover of all businesses with the same PAN must be added. Only goods manufacturers, dealers and restaurants (who do not serve alcohol) can choose the composition scheme according to section 10. Service providers can opt for a similar scheme for composition distributors, as set out by the CGST (Rate) Notice no.2/2019 of March 7, 2019, with the total turnover limit being Rs 50 lakh. GST Rate Type of Business CGST SGST Total Manufacturer and Traders (Goods) 0.5% 0.5% 1% Restaurants not se