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GST small-business utility

GST Composition Scheme Eligibility Checker

Reviewed by Finin2min Editorial Desk · Last reviewed 11 August 2026

Check turnover limits and common exclusions for the GST composition levy and service composition scheme.

Check composition-scheme eligibility

Screening result

Enter turnover and business facts.

How This Is Calculated

The GST composition scheme lets small taxpayers pay tax at a flat, lower rate on turnover instead of regular GST, with simplified quarterly compliance — but it excludes anyone making inter-state outward supplies, non-taxable supplies, e-commerce sales through certain operators, notified excluded goods like ice cream and tobacco, non-resident taxable persons, or those holding multiple registrations under the same PAN outside the scheme rules, in addition to the aggregate turnover limit.

Frequently Asked Questions

Can a composition dealer make inter-state sales? ▼
No. Making any inter-state outward supply disqualifies a business from the composition scheme entirely — composition dealers can only supply within their own state (intra-state), which is one of its most significant restrictions.
What goods are excluded from the composition scheme regardless of turnover? ▼
Certain notified goods — including ice cream, pan masala and tobacco products — are excluded from composition scheme eligibility regardless of turnover, because they attract compensation cess and higher scrutiny.
Can an e-commerce seller opt for the composition scheme? ▼
Generally no — a supplier making sales through an e-commerce operator required to collect TCS is excluded from composition scheme eligibility, though supplying goods through your own website (not via a marketplace operator) may be treated differently. Check the specific facts before assuming eligibility.

Source and review trail

Use the current official instrument, portal or regulator publication before acting. This panel separates the category authority from page-specific references.

Official starting point
www.gstcouncil.gov.in

Related guidance: GST Composition Scheme Eligibility: Should Small Businesses Opt In? | Finin2min · GST LUT Eligibility and Export Action Checker | Finin2min

Composition eligibility is more than turnover

Test turnover, nature of supplies, excluded goods/services, inter-State outward supplies and e-commerce conditions together. The principal goods scheme and the separate service/mixed-supply scheme have different eligibility and rate structures.

A turnover-only result is not a filing conclusion. Confirm preceding-year aggregate turnover, current-year supply mix and all section 10 exclusions before opting in or continuing in the scheme.

Input integrity

  • Use source documents rather than approximate memory.
  • Confirm period, units, tax regime/category and sign conventions.
  • Test zero, threshold and just-above-threshold cases where relevant.

Output interpretation

  • Separate arithmetic output from legal eligibility/classification.
  • Preserve assumptions and the official-source date.
  • Use the linked detailed guide for exceptions and evidence.

Primary-source starting points

Reviewed 22 August 2026. Always test later amendments, corrigenda and portal implementation before a live filing or transaction.

Methodology, assumptions and sources

Scope: Checks eligibility for the GST Composition Scheme under Section 10 of the CGST Act, based on aggregate turnover and the nature of supplies made.

Calculation logic

  1. Compare aggregate turnover in the preceding financial year against the threshold prescribed for composition eligibility (currently ₹1.5 crore for most states, ₹75 lakh for specified special-category states, with a separate, generally lower threshold for service providers opting under the composition scheme for services).
  2. Check disqualifying conditions: the scheme is not available to a supplier making inter-state outward supplies, a supplier of goods through an e-commerce operator required to collect TCS, a manufacturer of specified notified goods (e.g., ice cream, pan masala, tobacco), or a casual/non-resident taxable person.
  3. Where eligible, show the applicable composition tax rate for the taxpayer's category (manufacturer/trader vs restaurant service vs other service providers each have different prescribed rates).

Inputs and assumptions

Exclusions and edge cases

Sources

Review status: reviewed and approved by CA Nikhil Gupta on 5 July 2026.

Finin2min
Finance, tax and compliance—decoded for India.
© 2026 Finin2min · Educational use only · Verify current notification and portal position.

Guides that use this calculator

Background, worked examples and the rules behind these numbers.