{"id":6903,"date":"2025-08-02T09:36:08","date_gmt":"2025-08-02T09:36:08","guid":{"rendered":"https:\/\/margbooks.com\/blogs\/?p=6903"},"modified":"2025-08-05T09:44:16","modified_gmt":"2025-08-05T09:44:16","slug":"what-are-the-latest-turnover-limits-for-the-composition-scheme-in-gst","status":"publish","type":"post","link":"https:\/\/margbooks.com\/blogs\/what-are-the-latest-turnover-limits-for-the-composition-scheme-in-gst\/","title":{"rendered":"What are the Latest Turnover Limits for the Composition Scheme in GST?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_69_1 ez-toc-wrap-left counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #1c6e70;color:#1c6e70\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #1c6e70;color:#1c6e70\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/margbooks.com\/blogs\/what-are-the-latest-turnover-limits-for-the-composition-scheme-in-gst\/#Who_Can_Opt_for_the_Composition_Scheme_in_GST\" title=\"Who Can Opt for the Composition Scheme in GST?\">Who Can Opt for the Composition Scheme in GST?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/margbooks.com\/blogs\/what-are-the-latest-turnover-limits-for-the-composition-scheme-in-gst\/#Eligibility_Criteria\" title=\"Eligibility Criteria:\">Eligibility Criteria:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/margbooks.com\/blogs\/what-are-the-latest-turnover-limits-for-the-composition-scheme-in-gst\/#Turnover_Limits_by_Category\" title=\"Turnover Limits by Category:\">Turnover Limits by Category:<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/margbooks.com\/blogs\/what-are-the-latest-turnover-limits-for-the-composition-scheme-in-gst\/#Example\" title=\"Example\">Example<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/margbooks.com\/blogs\/what-are-the-latest-turnover-limits-for-the-composition-scheme-in-gst\/#Benefits_of_Choosing_the_Composition_Scheme_in_GST\" title=\"Benefits of Choosing the Composition Scheme in GST\">Benefits of Choosing the Composition Scheme in GST<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/margbooks.com\/blogs\/what-are-the-latest-turnover-limits-for-the-composition-scheme-in-gst\/#For_Lower_Tax_Rates\" title=\"For Lower Tax Rates:\">For Lower Tax Rates:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/margbooks.com\/blogs\/what-are-the-latest-turnover-limits-for-the-composition-scheme-in-gst\/#What_Are_the_Limitations\" title=\"What Are the Limitations?\">What Are the Limitations?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/margbooks.com\/blogs\/what-are-the-latest-turnover-limits-for-the-composition-scheme-in-gst\/#Why_Turnover_Limits_Matter_So_Much\" title=\"Why Turnover Limits Matter So Much?\">Why Turnover Limits Matter So Much?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/margbooks.com\/blogs\/what-are-the-latest-turnover-limits-for-the-composition-scheme-in-gst\/#Things_to_Keep_in_Mind\" title=\"Things to Keep in Mind:\">Things to Keep in Mind:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/margbooks.com\/blogs\/what-are-the-latest-turnover-limits-for-the-composition-scheme-in-gst\/#How_do_Businesses_Use_This_Scheme\" title=\"How do Businesses Use This Scheme?\">How do Businesses Use This Scheme?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/margbooks.com\/blogs\/what-are-the-latest-turnover-limits-for-the-composition-scheme-in-gst\/#When_Should_You_Reconsider\" title=\"When Should You Reconsider?\">When Should You Reconsider?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/margbooks.com\/blogs\/what-are-the-latest-turnover-limits-for-the-composition-scheme-in-gst\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n\n<p>If you&#8217;re a small trader, shopkeeper, or service provider trying to manage taxes without getting buried in paperwork, the composition scheme in GST might be your best friend. It&#8217;s a simplified tax option meant for small businesses that don\u2019t want to deal with the hassle of monthly GST returns and complex rules.&nbsp;<\/p>\n\n\n\n<p>Whether you\u2019re running a sweet shop in Kanpur or a tailoring store in Kochi, this scheme helps you stay compliant with less effort. In this blog, we\u2019ll break down the latest turnover limits, eligibility rules, and real-life benefits of the composition scheme in GST, with practical examples you&#8217;ll relate to.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who_Can_Opt_for_the_Composition_Scheme_in_GST\"><\/span>Who Can Opt for the Composition Scheme in GST?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The composition scheme in GST is designed for small taxpayers who want to pay a fixed percentage of their turnover as tax, without getting into the nitty-gritty of input tax credit and invoice matching.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Eligibility_Criteria\"><\/span>Eligibility Criteria:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Traders and Manufacturers: Turnover up to \u20b91.5 crore in most states (\u20b975 lakh for special category states).<\/li>\n\n\n\n<li>Service Providers: Turnover up to \u20b950 lakh (introduced under Notification No. 2\/2019).<\/li>\n\n\n\n<li>Mixed supply (goods + services) businesses can also apply under certain conditions.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Turnover_Limits_by_Category\"><\/span>Turnover Limits by Category:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Goods Traders\/Manufacturers: \u20b91.5 crore<\/li>\n\n\n\n<li>Special Category States: \u20b975 lakh<\/li>\n\n\n\n<li>Service Providers: \u20b950 lakh<\/li>\n\n\n\n<li>Restaurants (Not serving alcohol): \u20b91.5 crore<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Example\"><\/span>Example<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>A dosa outlet in Chennai with annual sales of \u20b91.2 crore can pay a flat 5% GST under this scheme with <a href=\"https:\/\/margbooks.com\/gst-billing-software.html\">GST billing software<\/a>, without worrying about monthly returns. They manage it easily with MargBooks and never miss a due date.<\/p>\n\n\n\n<div class=\"btn-div\">\n\n    <a href=\"https:\/\/me9.in\/MBB\" class=\"marg-btn\" target=\"_blank\" rel=\"noopener\">Get GST Billing Software<\/a>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Benefits_of_Choosing_the_Composition_Scheme_in_GST\"><\/span>Benefits of Choosing the Composition Scheme in GST<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>This scheme isn\u2019t just about reduced tax rates. It\u2019s also about peace of mind. The key benefits are as follows:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"For_Lower_Tax_Rates\"><\/span>For Lower Tax Rates:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Traders: 1%<\/li>\n\n\n\n<li>Manufacturers: 1%<\/li>\n\n\n\n<li>Restaurants (Non-alcohol): 5%<\/li>\n\n\n\n<li>Service Providers: 6%<\/li>\n\n\n\n<li>Quarterly Filing instead of monthly GST returns<\/li>\n\n\n\n<li>No detailed records required, simple summaries are enough<\/li>\n\n\n\n<li>Cannot collect GST from customers with easier pricing<\/li>\n\n\n\n<li>Less risk of notices and scrutiny<\/li>\n<\/ul>\n\n\n\n<p>A grocery shop in Ahmedabad uses MargBooks to automatically track their turnover and file quarterly returns under this scheme without hiring a full-time accountant.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Are_the_Limitations\"><\/span>What Are the Limitations?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>This is very easy and simple to do, but there are a few restrictions you should know:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>No input tax credit allowed<\/li>\n\n\n\n<li>Not eligible if you deal in interstate supplies<\/li>\n\n\n\n<li>You can\u2019t supply through e-commerce platforms like Amazon or Flipkart<\/li>\n\n\n\n<li>You must mention \u201ccomposition taxable person\u201d on all bills<\/li>\n<\/ul>\n\n\n\n<p>For example, a boutique in Indore using <a href=\"https:\/\/margbooks.com\/s\/online-invoice-software\/\">online invoice software<\/a> must ensure every bill clearly states this status to stay compliant.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_Turnover_Limits_Matter_So_Much\"><\/span>Why Turnover Limits Matter So Much?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Turnover is the gatekeeper for eligibility. Once you cross the limit, you&#8217;re automatically out of the scheme and must switch to regular GST filing with the composition scheme in GST.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Things_to_Keep_in_Mind\"><\/span>Things to Keep in Mind:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Turnover includes all supplies made, including exempt supplies<\/li>\n\n\n\n<li>It&#8217;s calculated PAN-wise, not GSTIN-wise. So even if you have multiple outlets, all are clubbed together.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_do_Businesses_Use_This_Scheme\"><\/span>How do Businesses Use This Scheme?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Still wondering how this works in the real world? Here are a few examples:<\/p>\n\n\n\n<p>Kirana store in Bhopal: Turnover \u20b990 lakh, pays just 1% under the scheme, files returns every quarter.&nbsp;<\/p>\n\n\n\n<p>Freelance graphic designer in Pune: Turnover \u20b935 lakh, pays 6% GST with minimal compliance work with our Online invoice software.&nbsp;<\/p>\n\n\n\n<p>South Indian restaurant in Hyderabad: Turnover \u20b91.3 crore, opts for 5% GST with no input credit, bills are managed.&nbsp;<\/p>\n\n\n\n<p>A shoe trader with outlets in Delhi and Gurgaon must track total turnover PAN-wise. They use GST billing software to consolidate and monitor everything in one place.<\/p>\n\n\n\n<div class=\"btn-div\">\n\n    <a href=\"https:\/\/me9.in\/MBB\" class=\"marg-btn\" target=\"_blank\" rel=\"noopener\">Get Online Billing Software<\/a>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"When_Should_You_Reconsider\"><\/span>When Should You Reconsider?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The scheme is perfect for low-volume, local businesses. But if you:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Start selling on e-commerce sites<\/li>\n\n\n\n<li>Expand to interstate supplies<\/li>\n<\/ul>\n\n\n\n<p>Want to claim input tax credit on purchases? Then you may need to switch to regular GST.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If you&#8217;re a small business owner looking to keep things simple, the composition scheme in GST is a great option, as long as your turnover fits the latest limits. With flat tax rates, fewer filings, and no complex input tax tracking, it\u2019s a practical way to stay GST-compliant without losing sleep.&nbsp;<\/p>\n\n\n\n<p>Whether you run a service studio in Nagpur or a stationery shop in Ludhiana using <a href=\"https:\/\/margbooks.com\/\">MargBooks<\/a>, our software can help you stay on top of your numbers and avoid penalties. For many small businesses in India, the composition scheme in GST is not just convenient, it\u2019s smart.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you&#8217;re a small trader, shopkeeper, or service provider trying to manage taxes without getting buried in paperwork, the composition scheme in GST might be your best friend. It&#8217;s a simplified tax option meant for small businesses that don\u2019t want to deal with the hassle of monthly GST returns and complex rules.&nbsp; Whether you\u2019re running [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":6906,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[38],"tags":[86,54,201],"class_list":["post-6903","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-gst","tag-gst-billing-software","tag-online-accounting-software","tag-online-billing-software"],"blocksy_meta":[],"blog_post_layout_featured_media_urls":{"thumbnail":["https:\/\/margbooks.com\/blogs\/wp-content\/uploads\/2025\/08\/composition-scheme-in-GST-150x150.jpg",150,150,true],"full":["https:\/\/margbooks.com\/blogs\/wp-content\/uploads\/2025\/08\/composition-scheme-in-GST.jpg",1200,576,false]},"categories_names":{"38":{"name":"GST","link":"https:\/\/margbooks.com\/blogs\/category\/gst\/"}},"tags_names":{"86":{"name":"gst billing software","link":"https:\/\/margbooks.com\/blogs\/tag\/gst-billing-software\/"},"54":{"name":"online accounting software","link":"https:\/\/margbooks.com\/blogs\/tag\/online-accounting-software\/"},"201":{"name":"online billing software","link":"https:\/\/margbooks.com\/blogs\/tag\/online-billing-software\/"}},"comments_number":"0","wpmagazine_modules_lite_featured_media_urls":{"thumbnail":["https:\/\/margbooks.com\/blogs\/wp-content\/uploads\/2025\/08\/composition-scheme-in-GST-150x150.jpg",150,150,true],"cvmm-medium":["https:\/\/margbooks.com\/blogs\/wp-content\/uploads\/2025\/08\/composition-scheme-in-GST.jpg",300,144,false],"cvmm-medium-plus":["https:\/\/margbooks.com\/blogs\/wp-content\/uploads\/2025\/08\/composition-scheme-in-GST.jpg",305,146,false],"cvmm-portrait":["https:\/\/margbooks.com\/blogs\/wp-content\/uploads\/2025\/08\/composition-scheme-in-GST.jpg",400,192,false],"cvmm-medium-square":["https:\/\/margbooks.com\/blogs\/wp-content\/uploads\/2025\/08\/composition-scheme-in-GST.jpg",600,288,false],"cvmm-large":["https:\/\/margbooks.com\/blogs\/wp-content\/uploads\/2025\/08\/composition-scheme-in-GST.jpg",1024,492,false],"cvmm-small":["https:\/\/margbooks.com\/blogs\/wp-content\/uploads\/2025\/08\/composition-scheme-in-GST.jpg",130,62,false],"full":["https:\/\/margbooks.com\/blogs\/wp-content\/uploads\/2025\/08\/composition-scheme-in-GST.jpg",1200,576,false]},"_links":{"self":[{"href":"https:\/\/margbooks.com\/blogs\/wp-json\/wp\/v2\/posts\/6903","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/margbooks.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/margbooks.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/margbooks.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/margbooks.com\/blogs\/wp-json\/wp\/v2\/comments?post=6903"}],"version-history":[{"count":1,"href":"https:\/\/margbooks.com\/blogs\/wp-json\/wp\/v2\/posts\/6903\/revisions"}],"predecessor-version":[{"id":6907,"href":"https:\/\/margbooks.com\/blogs\/wp-json\/wp\/v2\/posts\/6903\/revisions\/6907"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/margbooks.com\/blogs\/wp-json\/wp\/v2\/media\/6906"}],"wp:attachment":[{"href":"https:\/\/margbooks.com\/blogs\/wp-json\/wp\/v2\/media?parent=6903"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/margbooks.com\/blogs\/wp-json\/wp\/v2\/categories?post=6903"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/margbooks.com\/blogs\/wp-json\/wp\/v2\/tags?post=6903"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}