A taxpayer whose turnover is below Rs 1.5 crore* can opt for Composition Scheme. In case of North-Eastern states and Himachal Pradesh, the limit is now Rs 75* lakh. As per the CGST (Amendment) Act, 2018, a composition dealer can also supply services to an extent of ten percent of turnover, or Rs.

Who is composite dealer?

A composition dealer has to issue a Bill of Supply. They cannot issue a tax invoice. This is because the tax has to be paid by the dealer out of pocket. A composition dealer is not allowed to recover the GST from the customers.

Who is eligible for composition dealer?

Businesses with an aggregate turnover of up to 100 lakh in a preceding financial year shall be eligible for composition scheme. Small taxpayers registered under composition scheme will not be required to raise any tax invoice, instead simply need to issue a Bill of Supply for the supplies made by them.