Find
Once turnover crosses the composition limit during the year, you leave the scheme from that day and become a regular taxpayer. GSTR-4 covers the period up to then.
GST
Crossing ₹1.5 crore in composition
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Provisions
Sec 10, CGST Act 2017; Rule 62, CGST Rules 2017
Analysis
Sec 10 sets the limit at ₹1.5 crore for most goods traders and manufacturers, lower in some States, and ₹50 lakh for service providers opting under Sec 10(2A). The rules ask for an intimation in CMP-04 within 7 days of crossing. Example: crossed on 12 January 2026; regular tax applies from then, GSTR-4 covers April 2025 to that date.
Close
- Note the date turnover crossed the limit.
- File CMP-04 within 7 days.
- Start issuing tax invoices and file regular returns.
- Claim ITC on stock through ITC-01 within the time allowed.
- File GSTR-4 for the composition period.
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