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Composite scheme in GST

Today we will discuss the composite scheme in the GST, In this we will discuss all the provision of composite scheme. what are the benefits of the composite  scheme. Also we will discuss the transitional provision in GST for composite  dealer.

Who is eligible for the composite scheme ?

Any dealer dealing in goods can opt for Composition scheme, note service sector can not opt for composition scheme. Only restaurant can opt for composition scheme.

Threshold limit in composition scheme?

Threshold limit in composition scheme is Rs 75 Laks.

Input credit by composite dealer

Composite  dealer cannot take the input credit on the purchase, He has to pay the tax on sale.

Invoice Procedure in Composite scheme

Composite  dealer will issue the bill of supply. he cannot issue the GST Invoice

Bill of supply

Bill of supply

Composite Rates

Particular CGST SGST
Manufacturer 1 1
Restaurant 2.5 2.5
Other dealer 0.5 0.5

Can composite dealer purchase the goods from outside state

Yes, Composite dealer can purchase the goods from outside the state

Restriction in composite dealer

Composite dealer can not sale the goods out of state, this is major hurdle for the composite dealer.

No other state purchase should be in Stock, An composite dealer can purchase the goods from out of state but he can not have stock of the goods on the day of transfer from normal to composite.

Goods kept out of composite scheme

Biscuits etc cannot be sale in composite schemes

Transitional provision in composite scheme.

Transfer from Normal to Composite?

Dealer having registered in vat in normal scheme and now want to transfer in composite scheme

Stock available should be duty paid. Input credit already taken in vat and goods held in stock to be reversed

No interstate purchase should be held in stock in trade

Stock from unregistered dealer should not be in stock

Benefits of Composite Scheme

Who can take the Benefits?

Only small retailer selling the goods to the end user will get the benefits of that scheme. where the turnover is small and not saling out of state like

What are the benefits?

Less Compliance

Less tax rate


After checking this blog you can visit our blog  do the GST Registration.


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One comment

  1. I have migrated from vat to gst.want to go to composition. What is the process. No link to opt composition is available on portal

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