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GST Composition vs Regular Scheme Calculator
Compare tax liability under Composition Scheme and Regular Scheme to choose the best option
Enter Business Details
Composition rate: 1%
Total taxable sales (excluding GST). Max ₹1.5 Cr for composition eligibility
Total purchases (excluding GST)
Business expenses like rent, utilities, etc. (excluding GST)
Comparison Results
Enter business details to compare schemes
Composition Scheme Benefits
- ✅ Lower tax rate (1% or 6%)
- ✅ Simplified compliance (Quarterly returns)
- ✅ Less paperwork and record-keeping
- ✅ Suitable for small businesses
- ❌ No input tax credit available
- ❌ Cannot charge GST on invoices
- ❌ Cannot do interstate supplies
- ❌ Turnover limit: ₹1.5 Cr (₹75 L for services)
Regular Scheme Benefits
- ✅ Input tax credit available
- ✅ Can do interstate supplies
- ✅ No turnover limit
- ✅ Better for B2B businesses
- ✅ Can issue tax invoices
- ❌ Higher compliance burden
- ❌ Monthly returns required
- ❌ More record-keeping
Eligibility Criteria
• Annual turnover up to ₹1.5 Crore
• Not engaged in inter-state supplies
• Not selling exempt goods
• Not an e-commerce operator
GST 2.0 Rate Changes (w.e.f. 22 Sept 2025)
• New rate structure: 0%, 5%, 18%, 40% (12% and 28% slabs eliminated)
• 99% of items previously at 12% moved to 5%
• 90% of items previously at 28% moved to 18%
• New 40% rate for luxury/sin goods (pan masala, tobacco, aerated drinks)
• Composition scheme rates remain unchanged
Disclaimer
This calculator uses simplified assumptions (18% avg GST rate for regular scheme under GST 2.0). Actual tax may vary based on specific GST rates applicable to your goods/services. Consult a CA for accurate compliance.