Composition Scheme: GSTN Enables window to opt for Composition Scheme for the F.Y 2022-23

Last Updated On: Feb. 21, 2022, 12:55 p.m.



What is Composition Scheme?

A composition scheme is a scheme that offers taxpayers comparatively lesser compliances. Small taxpayers can get rid of various GST formalities and can pay GST at a fixed rate of turnover. For fresh registrations under the GST Composition Scheme, an intimation in Form GST REG- 01 must be filed.


Who are eligible to Opt for Composition Scheme?

  • Businesses that supply goods through an e-commerce operator.
  • Casual Taxable Person or a Non-resident Taxable Person
  • Supplier of services other than restaurant related services(i.e.Restaurants are allowed)
  • Taxpayer supplying Exempt supplies
  • Manufacturer of ice cream, pan masala, or tobacco.


Who are not eligible to opt for Composition Scheme?

This scheme can be opted by any taxpayer whose turnover is less than Rs. 1.5 Crores. In the case of North-Eastern states and Himachal Pradesh, the limit is Rs 75 lakhs.


What are the returns under Composition Scheme?

A dealer who has opted for Composition Scheme is required to file a quarterly composition return that is Form GSTR-4 by the 18th of the month after the end of every quarter. An Annual Composition return form i.e GSTR-9A has to be filed by the 31st December of next Financial year.


What are the GST rates for Composition dealers?


Sl.No Particulars GST Rates
1. Restaurants (Not Serving Alcohol) 2.5% CGST and 2.5% SGST
2. Service Providers 3% CGST and 3% SGST
3. Manufacturer and Traders 0.5% CGST and 0.5% SGST


GSTN Enables the Window to opt for Composition Scheme for the F.Y 2022-2023:


The Goods and Service Tax Network has enabled the window to opt-in for the composition scheme for the Financial Year 2022-23.

The eligible taxpayers who avail of the composition scheme may opt-in for composition before March 31, 2022. You can opt for the Composition Levy under GST if you are a regular taxpayer with an aggregate annual domestic PAN-based turnover as specified from time to time.

However, you cannot opt for the Composition Levy if you are/you make any supply of goods which are not liable to be taxed under this Act; inter-state outward supplies of goods; supplies through electronic commerce operators who are required to collect tax under section 52; a manufacturer of notified goods; a casual dealer; a Non-Resident Foreign Taxpayer; a person registered as Input Service Distributor (ISD); and a person registered as TDS Deductor/Tax Collector.

To opt for the Composition Levy, perform the following steps on the GST portal login to the Taxpayers’ Interface, then Go to Services > Registration > Application to Opt for Composition Levy, Fill the form as per the form specification rules and submit.



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