Composition Scheme Eligibility Checker
The GST composition scheme lets small businesses pay tax at a low flat rate on turnover with simpler quarterly compliance — but with conditions: no inter-state outward supply, no input tax credit, and turnover limits. Enter your business type, state category and turnover to see if you likely qualify and the rate that would apply.
Limits & rates
| Type | Turnover limit | Rate |
|---|---|---|
| Traders | ₹1.5 cr (₹75 lakh special states) | 1% (0.5% + 0.5%) |
| Manufacturers | ₹1.5 cr (₹75 lakh special states) | 1% (0.5% + 0.5%) |
| Restaurants (no alcohol) | ₹1.5 cr | 5% (2.5% + 2.5%) |
| Service / mixed (sec 10(2A)) | ₹50 lakh | 6% (3% + 3%) |
FAQ
What is the composition scheme turnover limit?
₹1.5 crore for goods (₹75 lakh in special category states) and ₹50 lakh for service providers/mixed suppliers.
What are the rates?
1% traders and manufacturers, 5% restaurants, 6% eligible service providers — paid by the dealer, who cannot collect GST or claim ITC.
Can a composition dealer sell across states?
No. Making inter-state outward supplies disqualifies you from the scheme.
Related tools
Registration Checker
Do you need to register?
QRMP Checker
Quarterly filing scheme.
E-invoice Checker
Is e-invoicing needed?
Guide: Composition scheme
Pros, cons and rules.
GST Calculator
Add GST to any amount.
Bill of Supply
Composition dealers issue this.
Last updated: 2 July 2026.