What is Composition Scheme

Last updated at July 25, 2026 by

What is Composition Scheme
Composition Scheme is a scheme for Small Tax Payers with Turnover upto 1.5 Crore
These small shopkeepers do not show GST on their Invoice
Their Invoice is always tax inclusive
They pay tax normally at 1% of GST, however they do not get any Input 
 
Sample Invoice of Composition Scheme
fan bill.jpg
 
Important Points
1. This scheme can be opted  only if turnover upto 1.5 Crores
    This scheme is optional in nature
turnover and case.png
 
Separate Rule in Special Category States
Special Category States means North eastern states and  Uttarakhand
Here Limit for Composition Scheme is 75 lacs
turnover and case 2.png
2. This scheme can be opted only if making local Sales
If making interstate sales, we can only opt for Interstate sales
 
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