GST Composition Scheme Calculator

Calculate tax under GST Composition Scheme with latest 2025 rates and limits. Check eligibility, compare with regular GST, and find the best option for your small business.

Composition Scheme Calculator

2025

Calculate tax liability under GST Composition Scheme with latest 2025 rates and compare with regular GST

Business Type

Limit: ₹1.5 crore for Manufacturers/Traders, ₹50 lakh for Service Providers

Special category states have ₹75 lakh limit for manufacturers/traders

What is Composition Scheme?

The GST Composition Scheme is a simplified tax payment option for small businesses with turnover up to ₹1.5 crore (₹50 lakh for service providers). Instead of paying regular GST rates, businesses pay a fixed percentage of their turnover.

Tax Rates (2025)

  • 1% Manufacturers & Traders of goods
  • 5% Restaurants not serving alcohol
  • 6% Service Providers & mixed supply

Eligibility Criteria

  • ✓ Turnover up to ₹1.5 cr (manufacturers/traders)
  • ✓ Turnover up to ₹50 lakh (service providers)
  • ✓ ₹75 lakh for NE states & Himachal Pradesh
  • ✓ Only intra-state supplies (within state)

Who Cannot Opt?

  • ✗ Ice cream, pan masala, tobacco manufacturers
  • ✗ Businesses making inter-state supplies
  • ✗ E-commerce operators
  • ✗ Casual or non-resident taxable persons

Benefits

  • •
    Lower Tax Rates: Pay much lower tax compared to regular GST rates
  • •
    Quarterly Returns: File only 4 returns per year (CMP-08) instead of 12
  • •
    Simple Compliance: Reduced documentation and book-keeping requirements
  • •
    No Invoice Matching: Easier compliance without invoice-level tracking
  • •
    Lower Penalties: Reduced penalty structure for small defaults

Limitations

  • •
    No ITC: Cannot claim Input Tax Credit on purchases
  • •
    Intra-State Only: Cannot make inter-state supplies
  • •
    No "GST" on Invoice: Cannot collect GST separately from customers
  • •
    Limited Customer Base: B2B customers may prefer regular GST dealers for ITC
  • •
    Annual Binding: Once opted, must continue for full financial year

Important Dates for FY 2025-26

March 31, 2025
Last date to file Form CMP-02 for FY 2025-26 opt-in
Quarterly
File CMP-08 returns within 18 days of quarter end
Annual
File GSTR-4 annual return by April 30 of next FY

Understanding GST Composition Scheme Calculator

Our GST Composition Scheme Calculator helps small businesses determine if the composition scheme is beneficial for them. The calculator uses the latest 2025 rates and turnover limits to provide accurate tax calculations and comparisons with the regular GST scheme.

How to Use the Calculator

  1. Select your business type (Manufacturer/Trader, Restaurant, or Service Provider)
  2. Enter your annual turnover
  3. Select your state type (Regular or Special category states)
  4. Optionally, enable comparison mode to see savings vs regular GST
  5. Click "Calculate" to see your eligibility and tax liability

When to Choose Composition Scheme?

The Composition Scheme is ideal for businesses with low Input Tax Credit (ITC) utilization, primarily dealing with retail customers (B2C), and looking to reduce compliance burden. If your business has high input costs with available ITC, or supplies to other businesses who need ITC, the regular scheme might be more beneficial.

Latest Updates for 2025

The turnover limits and tax rates remain unchanged for 2025. However, businesses must file Form CMP-02 by March 31, 2025, to opt into the scheme for FY 2025-26. Quarterly returns (CMP-08) must be filed within 18 days of the end of each quarter.