GST Composition Scheme: Who Can Opt & What Are the Benefits? | Kallapotti Learn [ Kallapotti](/) [About](/about-us) [Features](/features) Business Types [ Restaurants & Food Outlets Fine dine, QSR, cafe, bakery & cloud kitchens](/restaurant-billing-software) [ Textile & Garments Sarees, apparel, boutiques & footwear matrix](/textile-billing-software) [ Retail & Wholesale Supermarkets, FMCG, weighing scales & Khata](/retail-wholesale-billing-software) [ Medical Shops & Pharmacies Batch & expiry alerts, credit ledger](/medical-shop-billing-software) [ Fertilizer & Agro Shops Seeds, pesticides & farmer credit](/fertilizer-shop-billing-software) [Integrations](/integrations) [Learn](/learn) [Pricing](/pricing) Resources [ Downloads Windows PC & Android app stores](/downloads) [ FAQ Frequently asked questions & answers](/faq) [ GST Calculator Free Indian GST rate calculator](/gst-calculator) [ Guides & Articles Tutorials & POS documentation](/learn) [ Support & Contact Direct phone, email & helpdesk](/contact-us) [ Search Site Find features, blogs & outlets](/search) [Book A Demo](/contact-us?intent=demo) [Access Portal ](https://links.kallapotti.com/portal) [ All Articles](/learn) GST Basics # GST Composition Scheme: Who Can Opt & What Are the Benefits? The GST Composition Scheme offers simplified compliance and lower tax rates for small businesses. Learn eligibility, tax rates, restrictions, and how to opt in. 6 min read Updated 16 September 2026 Ahopez Innovations Team Composition SchemeGSTSmall BusinessSimplified Filing The GST Composition Scheme is designed for small businesses to reduce compliance burden. Instead of filing monthly returns and paying GST on every invoice, composition taxpayers pay a flat quarterly tax as a percentage of their turnover. ## Eligibility (Who Can Opt) Business TypeTurnover LimitManufacturers & Traders (goods)≤ ₹1.5 Crore aggregate turnover in previous FYRestaurants (food & beverages)≤ ₹1.5 Crore aggregate turnoverService providers (SARC scheme)≤ ₹50 Lakh aggregate turnover## Tax Rates Under Composition Scheme TypeGST Rate on TurnoverManufacturers1% (0.5% CGST + 0.5% SGST)Traders (goods only)1% (0.5% CGST + 0.5% SGST)Restaurants5% (2.5% CGST + 2.5% SGST)Service providers (SARC)6% (3% CGST + 3% SGST)## Key Restrictions - Cannot make inter-state outward supply of goods or services - Cannot supply goods not leviable to tax (e.g. alcohol, petroleum) - Cannot issue a standard GST tax invoice — must issue a Bill of Supply mentioning "Composition taxable person, not eligible to collect tax on supplies" - Customers cannot claim Input Tax Credit (ITC) on purchases made from you - E-commerce rule (Amended Oct 2023): Composition taxpayers CAN now supply goods intra-state through e-commerce operators, but inter-state e-commerce sales remain prohibited - Cannot collect GST separately on invoices — tax is paid directly by the business from total turnover ## Filing Under Composition Scheme ReturnFrequencyDue DateCMP-08 (tax payment statement)Quarterly18th of month after quarter endGSTR-4 (annual)Annually30th April of next financial year Pro Tip To opt for composition scheme, file Form CMP-02 on the GST portal at the beginning of the financial year (before 31st March). Once opted, it applies for the full year. ## File GST returns with zero manual work Kallapotti generates GSTR-1-ready data, auto-calculates HSN codes, and tracks ITC — all from your daily billing. [Start 14-Day Free Trial ](/pricing) [← Browse all articles](/learn) [ Kallapotti](/) Enterprise-grade billing platform built for scale. Fast invoices, inventory control, and multi-terminal billing for modern businesses. [](https://www.instagram.com/kallapotti.pos/) [](https://www.linkedin.com/showcase/kallapotti-pos/) [](https://www.trustpilot.com/review/kallapotti.com) ## Products & Solutions - [Restaurants & Food POS](/restaurant-billing-software) - [Textile & Garments POS](/textile-billing-software) - [Retail & Wholesale POS](/retail-wholesale-billing-software) - [Medical Shop & Pharmacy POS](/medical-shop-billing-software) - [Fertilizer & Agro Shop POS](/fertilizer-shop-billing-software) - [Ecosystem Integrations](/integrations) - [Pricing Plans](/pricing) - [GST Calculator Tool](/gst-calculator) - [Affiliate Partner Program](/partner) ## Company & Support - [About Us](/about-us) - [Careers](/careers) - [FAQ](/faq) - [Help Center & Contact](/contact-us) - [Documentation](/documentation) - [Security & Trust](/security) ## Legal - [Terms of Service](/terms_of_service) - [Privacy Policy](/privacy-policy) - [Return Policy](/return&cancellation-policy) - [Shipping Policy](/shipping-policy) © 2026 Kallapotti POS Billing. All rights reserved. The best GST billing software for SMEs & Big Enterprises, Wholesale / Retail Shops, Manufacturers in India. [Powered by AhopeZ Innovations.](https://ahopez.in) Service Health: 99.99% [ Home](/) [ Learn](/learn) [ Support](https://wa.me/919363727215) [ Partner](/partner) More