GST Composition Eligibility Checker
Find out instantly whether your business can opt for the composition scheme — with your turnover cap and flat tax rate.
- Free — no sign-up
- Instant, on-screen results
- Built by our CA · CS team
- Rules cited on the page
Fill in the details — the answer on the right updates as you go.
Eligibility check — detail
Opt into composition (CMP-02) with a CA
We confirm your eligibility, file CMP-02, and set up your CMP-08 & GSTR-4 filings.
Disclaimer: Indicative check based on Section 10 & 10(2A) of the CGST Act. Eligibility also depends on not being a casual/non-resident taxable person, not supplying non-taxable goods, and other conditions — confirm with a professional before opting in.
Composition scheme — turnover caps & rates
The composition scheme lets small taxpayers pay GST at a flat percentage of turnover instead of the regular rates, with far fewer returns. The cap and rate depend on what you supply and where you are registered.
| Trader (goods) | 1% (0.5+0.5) |
| Manufacturer (goods) | 1% (0.5+0.5) |
| Restaurant (no alcohol) | 5% (2.5+2.5) |
| Other services — 10(2A) | 6% (3+3) |
| Goods — normal states | ₹1.5 crore |
| Goods — special-category states | ₹75 lakh |
| Services — scheme 10(2A) | ₹50 lakh |
| Rate split | CGST + SGST |
When you are not eligible
A registered person cannot opt for composition if any of the following apply — even if turnover is well within the cap.
Inter-state outward supply. Composition dealers can only make intra-state supplies; any outward supply to another state disqualifies you.
Supply through an e-commerce operator that collects TCS — selling on such platforms rules out composition.
Manufacturer of notified goods — ice-cream, pan-masala, tobacco, aerated water and certain other goods are excluded.
Turnover above the cap in the previous financial year (₹1.5 cr / ₹75 L for goods, ₹50 L for services).
Supplier of non-taxable goods — supplying goods not leviable to GST removes eligibility.
Casual or non-resident taxable person — such persons cannot register under the composition scheme.
How the composition scheme works
Opting in is a simple online declaration, after which you file a short quarterly challan and one annual return instead of the regular monthly filings.
Opt in — CMP-02
File the CMP-02 intimation on the GST portal before the start of the financial year to elect the scheme.
Bill of supply
Issue a bill of supply (not a tax invoice), do not collect GST from customers, and cannot claim input tax credit.
Pay — CMP-08
Pay the flat composition tax each quarter using the CMP-08 statement-cum-challan.
Annual — GSTR-4
File the GSTR-4 annual return once a year summarising the year's turnover and tax.
Key terms explained
CMP-02 (opt-in)
The intimation filed on the GST portal to opt into the composition scheme for a financial year. Existing taxpayers file it before the year begins.
CMP-08 (quarterly)
A quarterly statement-cum-challan used to declare turnover and pay the flat composition tax, due by the 18th of the month after each quarter.
GSTR-4 (annual)
The annual return for composition taxpayers, summarising the whole year's supplies and tax paid via CMP-08.
No ITC / no tax collection
Composition dealers cannot collect GST from customers and cannot claim input tax credit; they issue a bill of supply instead of a tax invoice.
Questions people ask
Short answers on GST Composition Eligibility. Tap a question to open it.
01Who can opt for the GST composition scheme?
A supplier of goods, or a restaurant, whose aggregate turnover in the preceding financial year did not exceed ₹1.5 crore — ₹75 lakh in the special category states. A separate scheme lets service providers with turnover up to ₹50 lakh pay 6%.
02Who cannot opt for composition?
Anyone making inter-state outward supplies, supplying through an e-commerce operator required to collect TCS, supplying goods that are not taxable under GST, a casual or non-resident taxable person, or a manufacturer of notified goods such as pan masala, tobacco, ice cream and aerated waters.
03Can a composition dealer collect GST or claim input tax credit?
No to both. The composition levy is paid out of the dealer's own pocket, cannot be shown as tax on the invoice, and no input tax credit is available. A bill of supply is issued instead of a tax invoice.
04When can I opt in or out?
Opt in by filing CMP-02 before the start of the financial year. If turnover crosses the limit during the year, you must file CMP-04 and move to the regular scheme from the day the limit is crossed, and file ITC-01 to claim credit on stock.
05Is composition worth it?
It is simplest for a business selling to consumers, where the buyer does not need input credit. If you sell mainly B2B, customers will prefer a regular supplier from whom they can claim credit.
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Disclaimer: This tool gives indicative results for general guidance only and is not professional advice. Please verify with a qualified CA before acting on the numbers.