Composition Scheme Under GST comes up with a lot of questions, especially for small businesses below the eligibility turnover limit who don't require input tax credit or inter-state supply dealing with it for the first time. Here are clear answers to what we're asked most often.
Can a composition dealer claim input tax credit?
No, input tax credit generally isn't available under this scheme.
Can I supply inter-state under composition?
Inter-state outward supply is generally not permitted under this scheme.
How is tax calculated under composition?
Tax is paid at a fixed percentage of turnover rather than on a per-transaction basis.
Can I switch back to the regular scheme?
Yes, a business can opt out and move to the regular scheme.
Still Have Questions?
Every business situation is a little different, and Composition Scheme Under GST is no exception. If your case doesn't fit neatly into the questions above, it's worth getting a second opinion before proceeding.
What You'll Typically Need
- Eligibility check against the turnover limit
- Confirmation the business isn't engaged in restricted categories
- Existing GST registration details, if converting from regular scheme
- Stock details as on the date of opting in
Need Help With This?
Leegal's team handles registration, compliance, and advisory work like this end-to-end, with transparent pricing and a dedicated point of contact throughout.
Call: +91 95721 91163 | Email: mail@leegal.in