Composition scheme tax, the limit check and the comparison in one place
This GST composition scheme calculator works out the tax a composition taxpayer pays each quarter in Form GST CMP-08: 1% for manufacturers and traders, 5% for restaurants that do not serve alcohol and 6% for service providers under section 10(2A), split equally into CGST and SGST/UTGST. It checks last year’s turnover against the limit, adds tax on reverse-charge purchases and 18% interest if you pay after the 18th, and compares the scheme with regular GST on the same takings.
Composition tax is a tax on turnover. You cannot charge it to customers, you issue a bill of supply instead of a tax invoice, and you cannot claim input tax credit, so the comparison shows whether the low rate really saves you money.
How to use the GST Composition Scheme Calculator
- Choose your type of business and the quarter.
- Enter the taxable supplies made in your State during the quarter, any exempt supplies and any tax due under reverse charge.
- Enter last year’s all-India aggregate turnover, and tick the box if you are registered in a special-category State.
- Add the date you paid, if it was after the due date, to include interest.
- Enter the GST you paid on purchases and the rate you would charge as a regular taxpayer to compare the two schemes.
GST Composition Scheme Calculator features
All four composition rates
Manufacturers 1%, traders 1% of taxable turnover, restaurants 5%, section 10(2A) services 6%.
Eligibility check
₹1.5 crore, ₹75 lakh in special-category States, and ₹50 lakh for section 10(2A).
CMP-08 due dates and interest
The 18th after each quarter, with 18% a year interest for each day late.
Composition vs regular GST
The total tax cost of each scheme out of the same takings.
Copy summary
The figures for your records or your accountant.
Composition scheme rates and turnover limits
Special-category States for the lower limit are Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura and Uttarakhand. Manufacturers of ice cream, pan masala and tobacco products, suppliers making inter-State supplies, casual and non-resident taxable persons cannot opt in. A composition supplier of goods may also supply services worth up to 10% of turnover or ₹5 lakh, whichever is higher.
| Who | Rate (CGST + SGST) | Charged on | Limit, previous year |
|---|---|---|---|
| Manufacturer | 1% (0.5% + 0.5%) | Turnover in the State | ₹1.5 crore (₹75 lakh special States) |
| Trader | 1% (0.5% + 0.5%) | Taxable supplies only | ₹1.5 crore (₹75 lakh special States) |
| Restaurant, no alcohol | 5% (2.5% + 2.5%) | Turnover in the State | ₹1.5 crore (₹75 lakh special States) |
| Services, section 10(2A) | 6% (3% + 3%) | Turnover in the State | ₹50 lakh |
Composition scheme calculation with an example
A trader sells ₹9,00,000 of taxable goods and ₹1,00,000 of exempt goods in April–June 2026. Tax = 1% × ₹9,00,000 = ₹9,000: ₹4,500 CGST and ₹4,500 SGST. The exempt sales are left out because a trader pays only on taxable supplies; a manufacturer would pay 1% of ₹10,00,000 = ₹10,000. CMP-08 is due on 18 July 2026.
Interest: if that ₹9,000, plus ₹2,000 of reverse-charge tax, is paid on 17 August — 30 days late — interest is ₹11,000 × 18% × 30 ÷ 365 = ₹162.74. A late GSTR-4 also attracts a late fee; work it out with the GST late fee calculator.
Is the composition scheme cheaper than regular GST?
Out of the same takings, regular GST costs you the GST included in your sales: ₹9,00,000 × 18 ÷ 118 = ₹1,37,288. The ₹1,20,000 GST on your purchases comes back as credit. Under composition you pay ₹9,000 but lose the ₹1,20,000 credit, so the cost is ₹1,29,000 — about ₹8,300 less here. At a 5% rate with ₹40,000 of purchase GST, regular GST is cheaper. Business buyers cannot claim credit on a composition supplier’s bills, so B2B sellers often lose orders. To add or remove GST on prices at regular rates, use the GST calculator.
Returns and due dates
- CMP-08 — statement and payment, by the 18th of the month after each quarter.
- GSTR-4 — annual return, by 30 June after the financial year (from FY 2024-25; earlier years 30 April).
- CMP-02 to opt in before the year starts; CMP-04 within 7 days of becoming ineligible.
- All dates in one list: the tax compliance calendar.
GST Composition Scheme Calculator FAQ
How is composition scheme tax calculated?
Multiply the quarter’s turnover by the rate for your business — 1% for manufacturers and traders (traders on taxable supplies only), 5% for restaurants and 6% for section 10(2A) service providers — and split it equally into CGST and SGST/UTGST.
What is the turnover limit for the composition scheme?
₹1.5 crore of aggregate turnover in the previous year, ₹75 lakh in the special-category States, and ₹50 lakh for the section 10(2A) scheme.
How is interest on late CMP-08 payment calculated?
Tax paid late × 18% × days late ÷ 365, counted from the day after the 18th.
Can a composition dealer collect GST from customers?
No. The tax is paid out of your own takings, and you issue a bill of supply headed “composition taxable person, not eligible to collect tax on supplies”.
Did the composition rates change in September 2025?
We found no change to the composition rates or limits in the GST rate changes of 22 September 2025, as of October 2026. Check the latest CBIC notifications before filing.
Is this tax advice?
No. It is an estimate from the published rules.