Find
Yes. A new applicant can opt for composition in the REG-01 form if eligible. Composition is for goods suppliers and restaurants with turnover up to ₹1.5 crore, and a separate 6 percent scheme exists for service providers up to ₹50 lakh.
GST
Choosing composition at the time of registration
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Provisions
Rule 3, CGST Rules 2017; Sec 10(1), CGST Act 2017; Sec 10(2A), CGST Act 2017
Analysis
Composition means paying a fixed percentage of turnover, filing CMP-08 quarterly and GSTR-4 yearly, with no input tax credit. A trader selling ₹60 lakh of goods pays 1 percent, ₹60,000, instead of collecting tax on each bill. It does not suit businesses selling inter-State or to B2B buyers who want credit. Choose it only after checking eligibility conditions under Rule 5.
Close
- Check eligibility: no inter-State sales, no excluded goods.
- Compare tax cost under composition with regular scheme.
- Tick the composition option in REG-01 if it suits you.
- Plan CMP-08 by the 18th after each quarter.
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