Composite tax pay each quarter rs:10 lacs compulsory

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If you're registered under the GST composition scheme, you must pay tax quarterly via the CMP-08 form by the 18th of the following month, regardless of your turnover. This tax rate varies: 1% for manufacturers and traders, 5% for restaurants, and 6% for service providers. Additionally, filing an annual GSTR-4 return by 30th June is compulsory, even if some tax was paid using a DRC-03 challan.

Kollipara Sundaraiah

Kollipara Sundaraiah (Querist)

07 June 2022 Sir,
A Gst non registered dealer aggregate turnover limit above rs:40 composite scheme new registered applied in gst act.
Question:
1.Dealer gst composite registered after each quarter rs:10 lacs tax pay compulsory.
2.Composite deale some tax payment through on DRC-03 challan (not showing cmp-08 returns) annual return Gstr-4 show compulsory .

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)

08 June 2022 You have to pay 1% of your turnover as composition tax

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

28 October 2026 Tax is paid every quarter through CMP-08 by the 18th after the quarter, whatever the turnover — 1% for manufacturers and traders, 5% for restaurants, 6% for service providers — not via DRC-03, and the annual GSTR-4 is compulsory by 30 June after the FY.

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

28 October 2026 There's no Rs 10 lakh trigger: a composition dealer pays tax every quarter through CMP-08 by the 18th of the next month, whatever the amount (1% traders/manufacturers, 5% restaurants, 6% service providers u/s 10(2A)), and must file GSTR-4 annually by 30 June even if some tax went by DRC-03; the eligibility cap is Rs 1.5 crore.

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