About the GST Composition Scheme Calculator
What is the GST Composition Scheme Calculator?
The GST composition scheme lets small businesses pay GST as a flat percentage of turnover — 1% for traders and manufacturers, 5% for restaurants and 6% for service providers — with simple quarterly compliance. The trade-off: you cannot collect GST from customers, claim input tax credit or sell across state lines.
Enter your business type, turnover, sales GST rate and purchases with GST. The calculator compares the composition tax with net GST under the regular scheme and checks the turnover limit (₹1.5 crore, or ₹50 lakh for service providers).
How to use the GST Composition Scheme Calculator
- Type of Business (sample: Trader or manufacturer (1%))
- Annual Turnover (₹) (sample: 1,20,00,000)
- GST Rate on Your Sales (regular scheme) (sample: 18% (standard rate))
- Purchases with GST Input Credit (₹, before GST) (sample: 80,00,000)
- GST Rate on Your Purchases (sample: 18% (standard rate))
- Press Compare Composition vs Regular GST (results also refresh as you type). The result card shows the Better Option, along with GST under composition (paid from your margin), Net GST under the regular scheme, Difference and Composition turnover limit.
Formula used
Composition GST = Turnover × Composition rate
- Regular GST = Sales × output rate − Purchases × input rate
The limit is ₹75 lakh (₹50 lakh for services) in some special-category states.
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| Type of Business | Trader or manufacturer (1%) |
| Annual Turnover (₹) | 1,20,00,000 |
| GST Rate on Your Sales (regular scheme) | 18% (standard rate) |
| Purchases with GST Input Credit (₹, before GST) | 80,00,000 |
| GST Rate on Your Purchases | 18% (standard rate) |
| Result | Value |
|---|---|
| Better Option | Composition scheme |
| GST under composition (paid from your margin) | ₹1,20,000 |
| Net GST under the regular scheme | ₹7,20,000 |
| Difference | ₹6,00,000 |
| Composition turnover limit | ₹1,50,00,000 |
| Remember | Composition dealers cannot collect GST from customers, claim input credit or make inter-state sales |
Tips for using the GST Composition Scheme Calculator
- Composition suits businesses selling mainly to consumers with thin input credit.
- B2B sellers usually prefer the regular scheme because buyers want input credit.
- Composition dealers must write “composition taxable person” on bills of supply.