How is composition tax calculated?

Manufacturers pay 1% and restaurants 5% of total turnover in the state. Traders pay 1% of taxable supplies, and service providers under Section 10(2A) pay 6%. The tax is split equally into CGST and SGST.

Do composition dealers pay reverse charge?

Yes. Reverse-charge purchases, such as goods transport or legal services, are taxed at the normal GST rate in CMP-08 on top of the composition tax, and no ITC can be claimed on them.

By the 18th of the month after each quarter: 18 July, 18 October, 18 January and 18 April. Late payment carries 18% interest. The annual GSTR-4 return is due by 30 April after the financial year.

What happens if I cross the composition turnover limit mid-year?

You leave the scheme from the day turnover crosses ₹1.5 crore (₹75 lakh in some special category states, ₹50 lakh for service providers). File CMP-04 within 7 days and charge regular GST from that day.

Composition Tax Calculator

Work out what each CMP-08 should pay — on the right turnover base for your category, with reverse charge added and interest if you are late — and watch the year's running total against your composition limit.

Business categoryFinancial yearRegistered in a ₹75 lakh limit state (Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Uttarakhand)

Manufacturers pay 1% on total turnover in the state — exempt supplies are included.

Composition Rates and Bases

Category	Rate	Charged on	Turnover limit
Manufacturer	1% (0.5% + 0.5%)	Total turnover in the state	₹1.5 Cr (₹75 L*)
Trader	1% (0.5% + 0.5%)	Taxable supplies only	₹1.5 Cr (₹75 L*)
Restaurant	5% (2.5% + 2.5%)	Total turnover in the state	₹1.5 Cr (₹75 L*)
Service provider, s.10(2A)	6% (3% + 3%)	Taxable supplies only	₹50 L

* Special category states listed above.

Not sure the scheme suits you? Run the eligibility checker or compare it with regular GST in the scheme comparison. Paid a CMP-08 late? The interest calculator shows the day count.

Quarter	Taxable turnover	Exempt / nil turnover	RCM inward value	RCM rate	CMP-08 paid on
Q1 (Apr–Jun)				5%18%40%
Q2 (Jul–Sep)				5%18%40%
Q3 (Oct–Dec)				5%18%40%
Q4 (Jan–Mar)				5%18%40%