GST Composition Scheme
Quick Reference for Your Business
Eligibility • Forms & Due Dates • Penalties – everything you need to know about GST Composition Scheme.
01
Eligibility & Tax Rates
| Business Type | Turnover Limit / Rate |
|---|---|
| Manufacturers & Traders Goods | Up to ₹1.5 cr — 1% of turnover |
| Special category states NE, Himachal, Uttarakhand | Up to ₹75 lakh |
| Restaurants Not serving alcohol | 5% of turnover |
| Other service providers | Up to ₹50 lakh — 6% of turnover |
Note: No Input Tax Credit. Issue a Bill of Supply (not a tax invoice). No inter-state sales and no sales through e-commerce platforms.
02
Forms & Due Dates
| Form | Last Date |
|---|---|
| CMP-02 Opt into the scheme | 31st March (before the FY starts) |
| CMP-08 Quarterly tax payment | 18th of month after the quarter |
| GSTR-4 Annual return | 30th June following the FY |
03
Penalties
CMP-08 paid late
18% /annum
Interest on the tax paid late
GSTR-4 filed late
₹50 /day
₹25 + ₹25, maximum ₹2,000; Nil return maximum ₹500
CMP-08 default for two quarters
🚫
E-way bill generation is blocked until pending returns are cleared
04
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