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GST vs Composition Scheme Comparator

Compare regular GST vs composition scheme for small businesses.

GST vs Composition Scheme Comparator
Compare tax liability under regular GST vs composition scheme for small businesses.
Compare
ITC not available under composition scheme.
Regular GST
Lower Tax
Output GST (18%): ₹9,00,000
Less ITC: (₹1,50,000)
₹7,50,000
Net GST payable
Composition Scheme (1%)
No ITC available
Simpler filing — quarterly
₹50,000
GST payable on turnover
Regular GST saves ₹7,00,000 vs composition — mainly due to ITC.

Composition scheme is not available for inter-state suppliers, e-commerce sellers, or those making exempt supply. Consider cash flow impact and ITC on purchases before choosing.

FAQ

Frequently Asked Questions

Quick answers to the questions we hear most often.