{"id":8563,"date":"2024-03-27T10:11:59","date_gmt":"2024-03-27T10:11:59","guid":{"rendered":"https:\/\/www.indifi.com\/blog\/?p=8563"},"modified":"2024-08-07T12:21:07","modified_gmt":"2024-08-07T12:21:07","slug":"a-closer-look-at-the-gst-composition-scheme","status":"publish","type":"post","link":"https:\/\/www.indifi.com\/blog\/a-closer-look-at-the-gst-composition-scheme\/","title":{"rendered":"GST Composition Scheme: Meaning, Tax Rates, Apply Online &#038; Eligibility"},"content":{"rendered":"<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2024\/03\/GST-Return-500x223.png\" alt=\"\" class=\"wp-image-8564\" width=\"874\" height=\"390\" srcset=\"https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2024\/03\/GST-Return-500x223.png 500w, https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2024\/03\/GST-Return-768x343.png 768w, https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2024\/03\/GST-Return-1536x686.png 1536w, https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2024\/03\/GST-Return-2048x914.png 2048w\" sizes=\"(max-width: 874px) 100vw, 874px\" \/><\/figure><\/div>\n\n\n<p><\/p>\n\n\n\n<p>To support the development of small businesses, the Indian Government introduced the GST composition scheme which enabled eligible taxpayers to pay GST with lesser compliance and at lower rates.<\/p>\n\n\n\n<p>Keep reading to learn more about this scheme, its tax rates, eligibility, application procedure, and more.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_67_1 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.indifi.com\/blog\/a-closer-look-at-the-gst-composition-scheme\/#What_Does_the_GST_Composition_Scheme_Mean\" title=\"What Does the GST Composition Scheme Mean?\">What Does the GST Composition Scheme Mean?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.indifi.com\/blog\/a-closer-look-at-the-gst-composition-scheme\/#GST_Composition_Schemes_Tax_Rates\" title=\"GST Composition Scheme&#8217;s Tax Rates\">GST Composition Scheme&#8217;s Tax Rates<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.indifi.com\/blog\/a-closer-look-at-the-gst-composition-scheme\/#GST_Composition_Scheme_%E2%80%93_Eligibility\" title=\"GST Composition Scheme \u2013 Eligibility\">GST Composition Scheme \u2013 Eligibility<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.indifi.com\/blog\/a-closer-look-at-the-gst-composition-scheme\/#How_to_Apply_Online_for_the_GST_Composition_Scheme\" title=\"How to Apply Online for the GST Composition Scheme?\">How to Apply Online for the GST Composition Scheme?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.indifi.com\/blog\/a-closer-look-at-the-gst-composition-scheme\/#Different_Forms_Under_The_Composition_GST_Scheme\" title=\"Different Forms Under The Composition GST Scheme\">Different Forms Under The Composition GST Scheme<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.indifi.com\/blog\/a-closer-look-at-the-gst-composition-scheme\/#GST_composition_scheme_rules\" title=\"GST composition scheme rules\">GST composition scheme rules<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.indifi.com\/blog\/a-closer-look-at-the-gst-composition-scheme\/#Takeaway\" title=\"Takeaway\">Takeaway<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.indifi.com\/blog\/a-closer-look-at-the-gst-composition-scheme\/#FAQs\" title=\"FAQs\">FAQs<\/a><ul class='ez-toc-list-level-5' ><li class='ez-toc-heading-level-5'><ul class='ez-toc-list-level-5' ><li class='ez-toc-heading-level-5'><ul class='ez-toc-list-level-5' ><li class='ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.indifi.com\/blog\/a-closer-look-at-the-gst-composition-scheme\/#Difference_between_regular_scheme_and_composition_scheme\" title=\"Difference between regular scheme and composition scheme\">Difference between regular scheme and composition scheme<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.indifi.com\/blog\/a-closer-look-at-the-gst-composition-scheme\/#Can_businesses_go_back_to_the_regular_GST_scheme_and_opt_out_of_composition_GST\" title=\"Can businesses go back to the regular GST scheme and opt out of composition GST?&nbsp;\">Can businesses go back to the regular GST scheme and opt out of composition GST?&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.indifi.com\/blog\/a-closer-look-at-the-gst-composition-scheme\/#How_many_types_of_GST_are_there\" title=\"How many types of GST are there?&nbsp;\">How many types of GST are there?&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.indifi.com\/blog\/a-closer-look-at-the-gst-composition-scheme\/#What_Is_Reverse_Mechanism_in_GST\" title=\"What Is Reverse Mechanism in GST?\">What Is Reverse Mechanism in GST?<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Does_the_GST_Composition_Scheme_Mean\"><\/span>What Does the GST Composition Scheme Mean?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The GST composition scheme is a tax-paying mechanism that is eligible for businesses having an annual turnover below \u20b91.5 crore.<\/p>\n\n\n\n<p>It aims to effectively reduce the compliance costs and tax burdens of small businesses, by allowing them to pay GST at fixed rates instead of the value addition that occurs at each stage of their supply chain. Explore details of how <a href=\"https:\/\/www.indifi.com\/blog\/eligibility-for-a-gst-loan\/\">small businesses are eligible&nbsp;for GST Loan<\/a>.<\/p>\n\n\n\n<p>It also reduces compliance hassles for taxpayers by exempting them from filing detailed quarterly and monthly reports. Instead, they can just file Form GSTR-4 for their quarterly returns and Form GSTR-9A for their annual returns.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"GST_Composition_Schemes_Tax_Rates\"><\/span>GST Composition Scheme&#8217;s Tax Rates<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The applicable composition GST scheme tax rates are as follows:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Type of Business<\/strong><\/td><td><strong>CSGT<\/strong><\/td><td><strong>SGST<\/strong><\/td><td><strong>Total GST<\/strong><\/td><\/tr><tr><td>Goods traders and manufacturers<\/td><td>0.5%<\/td><td>0.5%<\/td><td>1%<\/td><\/tr><tr><td>Restaurants (that do not serve alcohol)<\/td><td>2.5%<\/td><td>2.5%<\/td><td>5%<\/td><\/tr><tr><td>Others (like service providers)<\/td><td>3%<\/td><td>3%<\/td><td>6%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>The total GST under the composition scheme applies to the taxpayer&#8217;s annual turnover within a state or union territory.&nbsp;<\/p>\n\n\n\n<p>This includes the taxable and exempt supplies and excludes the inward supplies value of goods and services obtained from registered and unregistered entities, along with the unregistered supplies that come under reverse charge.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"GST_Composition_Scheme_%E2%80%93_Eligibility\"><\/span>GST Composition Scheme \u2013 Eligibility<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul>\n<li>Annual turnover in the previous financial year is below \u20b91.5 crore. This threshold is set at \u20b975 lakh for taxpayers in Himachal Pradesh and North-Eastern states.<\/li>\n\n\n\n<li>For service providers (except restaurants) the annual turnover limit is \u20b950 lakh.<\/li>\n\n\n\n<li>Must not be involved in the manufacture of pan masala, tobacco products, and ice cream.<\/li>\n\n\n\n<li>Must not be a casual taxable person or a non-resident.<\/li>\n\n\n\n<li>Must not be involved in the supply of goods and services which are non-taxable and do not come under GST.<\/li>\n\n\n\n<li>Must not manufacture notified goods that are listed under the CGST Act&#8217;s Section 10(2)(e).<\/li>\n\n\n\n<li>Must not be involved in inter-state goods and services supply.<\/li>\n\n\n\n<li>In case the taxpayer has several business verticals under the same PAN card, they need to apply for the GST composition scheme for all the entities. Opting for the composition scheme for one vertical and the regular mechanism for the rest is not applicable.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_Apply_Online_for_the_GST_Composition_Scheme\"><\/span>How to Apply Online for the GST Composition Scheme?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Here are the steps you can follow to apply for the GST composition scheme online:<\/p>\n\n\n\n<p><strong>Step 1 \u2013 <\/strong>Navigate to the <a href=\"https:\/\/www.indifi.com\/blog\/gst-portal-register-login-usage\/\">GST Login portal<\/a> and go to the \u2018Services\u2019 tab.<\/p>\n\n\n\n<p><strong>Step 2 \u2013 <\/strong>Click on \u2018Registration\u2019 and then on \u2018Application\u2019 to opt for GST Composition Levy.&nbsp;<\/p>\n\n\n\n<p><strong>Step 3 \u2013 <\/strong>Enter the financial year, registered person category, and other details.<\/p>\n\n\n\n<p><strong>Step 4 \u2013 <\/strong>Click on the checkbox to comply with the provisions of the scheme.<\/p>\n\n\n\n<p><strong>Step 5 \u2013 <\/strong>Verify all your details and provide your electronic verification code (EVC) or digital signature certificate (DSC) to submit the form.<\/p>\n\n\n\n<p><strong>Step 6 \u2013 <\/strong>Check your registered email ID or mobile number for the acknowledgement message and reference number.<\/p>\n\n\n\n<p>Your application will be reviewed by the GST officer and you will receive an acceptance\/rejection update within the next 15 days. You can check your application status by visiting the GST portal.<\/p>\n\n\n\n<p>If your application is approved, you will receive a GST CMP-02 form, indicating that you need to pay tax under the composition GST Scheme. Download this form from the portal as proof of registration under this scheme. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Different_Forms_Under_The_Composition_GST_Scheme\"><\/span>Different Forms Under The Composition GST Scheme<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Following are the various forms that will come in handy when applying for the composition scheme in GST:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Form No.<\/strong><\/td><td><strong>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; <\/strong><strong><\/strong><strong>Utility<\/strong><\/td><\/tr><tr><td><strong>GSTR-4<\/strong><\/td><td>Filing quarterly returns under the composition scheme.<\/td><\/tr><tr><td><strong>GSTR-9A<\/strong><\/td><td>Filing annual returns under the composition scheme.<\/td><\/tr><tr><td><strong>GST CMP-01<\/strong><\/td><td>Notification to choose the composition mechanism by a taxpayer who has been granted provisional<a href=\"https:\/\/www.indifi.com\/blog\/process-for-online-registration-for-gst\/\"> registration under GST.&nbsp;&nbsp;<\/a><\/td><\/tr><tr><td><strong>GST CMP-02<\/strong><\/td><td>Notification to choose the composition mechanism by a taxpayer having GST registration.<\/td><\/tr><tr><td><strong>GST CMP-03<\/strong><\/td><td>Notification of stock of goods details that was held on the day before the date of option exercise.<\/td><\/tr><tr><td><strong>GST CMP-04<\/strong><\/td><td>Notification of the taxpayer\u2019s withdrawal from the GST composition scheme.<\/td><\/tr><tr><td><strong>GST CMP-05<\/strong><\/td><td>Notice intimating the denial of the taxpayer\u2019s option to pay tax under the GST composition scheme.&nbsp;<\/td><\/tr><tr><td><strong>GST CMP-06<\/strong><\/td><td>Reply to the denial of tax payment under the GST composition scheme.&nbsp;<\/td><\/tr><tr><td><strong>GST CMP-07<\/strong><\/td><td>Order for accepting or rejecting the reply to the denial notice.<\/td><\/tr><tr><td><strong>GST ITC-03<\/strong><\/td><td>Declaration of input tax credit payment amount on the stock of goods held on the composition scheme withdrawal date.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>If you are also looking for strategies to minimize <a href=\"https:\/\/www.indifi.com\/blog\/proven-strategies-to-minimize-gst-penalties\/\">penalties on GST <\/a>then go through this article once.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"GST_composition_scheme_rules\"><\/span>GST composition scheme rules<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Here are some rules that taxpayers must follow in order to apply for tax payment under the GST composition scheme:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td>Taxpayers willing to opt for this scheme need to file Form GST CMP-02 before the financial year begins.<br><\/td><\/tr><tr><td>Individuals having provisional registration under the GST scheme and opting for the GST composition scheme need to file <strong>Form GST CMP-01 within 30 days of the designated date.<\/strong><br><\/td><\/tr><tr><td>Taxpayers need to pay an amount equaling the input tax credit on stock of goods held on the immediate preceding day of the composition scheme gst option exercise date. Its calculation needs to be done in the prescribed manner and individuals need to file Form GST ITC-03 within 60 days of the relevant financial year\u2019s commencement.<br><\/td><\/tr><tr><td>Taxpayers opting for this scheme need to mention the term \u201ccomposition taxable person\u201d on all their issued supply bills and on every notice or signboard that is displayed at their place of business.<br><\/td><\/tr><tr><td>They need to submit quarterly returns via Form GSTR-4 on the 18<sup>th<\/sup> of the following month after the quarter ends.<br><\/td><\/tr><tr><td>Annual returns need to be filed by taxpayers via Form GSTR-9A by 31<sup>st<\/sup> December after the financial year ends.<br><\/td><\/tr><tr><td>Returns need to contain turnover details, payable tax, tax payment, and other relevant details.<br><\/td><\/tr><tr><td>Tax due needs to be paid along with the returns, and it is payable via the electronic cash ledger or electronic credit ledger (in case available).<br><\/td><\/tr><tr><td>Taxpayers opting for this scheme do not need to maintain all details in their book of accounts as in case of normal taxpayers. However, they must maintain details regarding goods production, stock of goods, inward and outward supplies, payable tax, tax paid, and other essential details.<br><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>A software program called&nbsp;<a href=\"https:\/\/www.indifi.com\/blog\/what-is-gst-prime-and-how-is-it-beneficial-for-smes\/\">GST Prime<\/a>&nbsp;was created to make the process of complying with the Goods and Services Tax (GST) in India easier. Know more about it.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Takeaway\"><\/span>Takeaway<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>To conclude, businesses that plan to opt for the GST composition scheme must remember that they cannot switch back to the normal scheme for the entire financial year. It is only applicable in case their turnover exceeds the prescribed limit.<\/p>\n\n\n\n<p>Thus, they need to assess both the pros and cons of opting for this scheme before making a final decision.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQs\"><\/span>FAQs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h5 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Difference_between_regular_scheme_and_composition_scheme\"><\/span>Difference between regular scheme and composition scheme<span class=\"ez-toc-section-end\"><\/span><\/h5>\n\n\n\n<p>Under the regular GST tax system, the registered taxpayer collects and pays GST on the value of the goods and services supplied. Under the Composite GST scheme, taxpayers with businesses having a turnover of less than Rs. 1.5 crores can pay tax at a lower rate.&nbsp;<\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Can_businesses_go_back_to_the_regular_GST_scheme_and_opt_out_of_composition_GST\"><\/span>Can businesses go back to the regular GST scheme and opt out of composition GST?&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h5>\n\n\n\n<p>No, businesses are not allowed to opt out of the composition scheme in the same fiscal year. However, they can do so for the next financial year by visiting the GST portal.&nbsp;<\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_many_types_of_GST_are_there\"><\/span>How many types of GST are there?&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h5>\n\n\n\n<p>There are four <a href=\"https:\/\/www.indifi.com\/blog\/all-about-gst-gst-full-form-meaning-types-of-gst-in-india-what-is-cgst-sgst-and-igst\/\">type of GST<\/a>  that businesses charge depending on whether a transaction is inter-state (between two states) or intra-state (within the same state). Based on this, there are four types of GST &#8211;&nbsp;<\/p>\n\n\n\n<ul>\n<li>Central Goods and Service Tax (CGST)<\/li>\n\n\n\n<li>State Goods and Service Tax (SGST)<\/li>\n\n\n\n<li>Union Territory Goods and Service Tax (UGST)<\/li>\n\n\n\n<li>Integrated Goods and Service Tax (IGST)<\/li>\n<\/ul>\n\n\n\n<h5 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Is_Reverse_Mechanism_in_GST\"><\/span>What Is Reverse Mechanism in GST?<span class=\"ez-toc-section-end\"><\/span><\/h5>\n\n\n\n<p>&nbsp;In case of certain transactions, the responsibility of paying GST to the government falls on the buyer. This system is known as<a href=\"https:\/\/www.indifi.com\/blog\/what-is-reverse-mechanism-in-gst\/\"> reverse charge mechanism in GST<\/a> or RCM.<\/p>\n\n\n\n<p><strong>Who cannot opt for GST Composition Scheme?<\/strong><\/p>\n\n\n\n<p>The scheme is not available to the following individuals:<\/p>\n\n\n\n<ul>\n<li>Manufacturers of ice cream, pan masala, or tobacco<\/li>\n\n\n\n<li>Persons making interstate supplies<\/li>\n\n\n\n<li>Casual taxable persons or non-resident taxable persons<\/li>\n<\/ul>\n\n\n\n<p><strong>What are GST composition scheme turnover limit?<\/strong><\/p>\n\n\n\n<p>In India, small businesses with yearly sales up to Rs. 1.5 crore can choose a simpler tax option called the GST Composition Scheme. This voluntary scheme allows them to pay a fixed tax rate instead of the regular GST rates.<\/p>\n\n\n\n<p><strong>What are the advantages of the Composition Scheme?<\/strong><\/p>\n\n\n\n<p>Registering under the Composition Scheme offers several benefits:<\/p>\n\n\n\n<ul>\n<li>Reduced compliance requirements (fewer returns, simpler bookkeeping, and less invoicing)<\/li>\n\n\n\n<li>Lower tax liability<\/li>\n\n\n\n<li>Enhanced liquidity due to lower tax rates<\/li>\n<\/ul>\n\n\n\n<p><strong>What are GST composition scheme rules?<\/strong><\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>To support the development of small businesses, the Indian Government introduced the GST composition scheme which enabled eligible taxpayers to pay GST with lesser compliance and at lower rates. Keep reading to learn more about this scheme, its tax rates, eligibility, application procedure, and more. What Does the GST Composition Scheme Mean? The GST composition [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[808],"tags":[],"_links":{"self":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/8563"}],"collection":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/comments?post=8563"}],"version-history":[{"count":23,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/8563\/revisions"}],"predecessor-version":[{"id":11840,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/8563\/revisions\/11840"}],"wp:attachment":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/media?parent=8563"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/categories?post=8563"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/tags?post=8563"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}