This Scheme is for Small Business who cannot maintain detailed books of accounts and records.

Why GST Composition Scheme is introduced

Normally, an assesse under GST has to maintain proper records of Output and Input and pay 3 Monthly Returns every month+ One Annual Return

This is not possible for small business.

For such business, Government has introduced composition scheme under GST.

As per this Scheme, No Input is available to Composition Dealer. However, he has to pay Output at less Rate

Also Instead of monthly 3 returns, he can file Quarterly One Return plus one Annual Return

Hence, this scheme is for easy compliance of GST Law of small business



If turnover upto 100 lacs, then Composition Scheme can be availed

This to be shown in increase to 150 lacs as per GST Council meeting.


Till 31st Jan 2019 and From 1st Feb 2019.jpg


Government has changed GST Rates for Manufacturers from 2% to 1% Notification 1/2018

Hence, now GST Rates are similar for Traders and Manufacturers

Summary of Rates

Type of Business

TILL 31 DEC 2017

FROM 1 JAN 2018






2%  1%




Other services




Can Composition Dealer Provide Service?

Composition scheme is applicable to

  1. Traders
  2. Manufacturers
  3. Restaurant Business, (It is not available to other services Like CA, Consultancy Service etc)

From 1 Feb 2019, Composition dealers in goods allowed to supply services for a value not exceeding – Higher of 10% turnover or Rs 5 lacs, whichever is higher.


Return and Due Date for Composition Scheme

  • It is normally 18th of next Quarter
  • However Due date of Return for July-September has been extended to 24 Dec 2017
  • Gstr-4 has to be filed for Composition Dealer


Period Due Date
July-Sep 2017  24 Dec 2017
Oct-Dec 2017 18-Jan-18
Jan-March 2018 18-Apr-18
April-June 2018 18-Jul-18


Option to Avail Composition Scheme

Person can opt for Composition Scheme till 31 March 2018

Suppose scheme opted in one month will be effective from Next Month


Normal Dealer opts for Composition Scheme by 20 Nov 2017

He will file Composition Dealer Return and Tax starting from 1 Dec 2017


Normal Dealer Opts For Composition Scheme.jpg

For Composition Dealer 

GST Return for July - Sep Quarter to be filed by 24 Dec 2017

  1. GST - Goods and Services Tax, India
  2. GST Computation & Accounting

About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 9 years. He also provides Accounts Tax GST Training in Delhi and Pune.