Composition Scheme

What is Composition Scheme?

Composition Scheme is that scheme, In which any resident person has to pay tax at fixed rate based on his previous year's turnover. Due to the tax rate fix in the composition scheme, there is no need to fill the returns again and again that is monthly, but once in three months (quarterly) there is a need to fill the returns.

A person registered under composite scheme can’t charge the GST from customers.

Registered Person can’t issue tax invoice due to which he does not get any kind of input tax credit.

And the registered dealer has to issue a "Bill of Supply" in place of the tax invoice in the composition scheme.

And this scheme can be availed only by those individuals whose turnover in last year is 1 crore or less.

In the composition scheme, the person cannot sell from one state to another, in order to do that, he has to take normal registration.
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