Composition Scheme

What is Composition Scheme?

Composition Scheme is a simplified GST compliance scheme for small taxpayers with annual turnover up to Rs. 1.5 crores (Rs. 75 lakhs for services). Under this scheme, businesses pay tax at a lower rate (1-6% depending on business type) on their turnover and file returns quarterly. However, composition taxpayers cannot claim input tax credit, issue tax invoices, or supply goods interstate.