Turnover limit for composition dealer in gst

Turnover limit for composition scheme 

Replies (3)
Quick Summary
The Goods and Services Tax (GST) composition scheme has specific turnover limits. Generally, the limit is ₹1.5 crore for dealers, but it's reduced to ₹75 lakh for certain North-Eastern states. Service providers have a separate limit of ₹50 lakh. Opting for the scheme involves paying a fixed GST rate, such as 6% for dealers. It's crucial to check eligibility and conditions for your specific business type as part of your GST compliance.

1) 1.5 crore Turnover 

2) some Noth eastern states it's 75 lacs 

3) For service providers it's 50 Lacs,         turnover with 6% GST (3% CGST +3%SGST) . 

For GST, the general turnover limit for opting into the composition scheme is ₹1.5 crore in the preceding financial year, reduced to ₹75 lakh for specified special-category States. For eligible service providers, the separate limit is ₹50 lakh. Eligibility and limits depend on the type of business and applicable conditions.

Checking composition eligibility is part of periodic GST compliance and return planning. Manual reviews of turnover, business activity and scheme conditions can be repetitive; automation reduces that work while professional judgment remains in control. Our platform offers 2,000+ AI agents and 650+ integrations covering only relevant GST and accounting workflows. For a walkthrough tailored to your practice, WhatsApp us at https://wa.me/message/3HVOZ7HIY4ESC1.

Adding to the replies above, the limits are correct but the 6% rate applies only to service providers, not to traders.

1. Turnover limit (aggregate turnover of the preceding financial year):
• Goods suppliers, manufacturers and restaurants: Rs 1.5 crore.
• Rs 75 lakh in Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura and Uttarakhand (Himachal Pradesh, Assam and J&K have the Rs 1.5 crore limit).
• Service providers (or mixed suppliers) opting under Section 10(2A): Rs 50 lakh.

2. Composition tax rates:
• Manufacturers and traders: 1% (0.5% CGST + 0.5% SGST).
• Restaurant services (no alcohol): 5%.
• Service providers under Section 10(2A): 6% (3% + 3%).

3. Key conditions:
• No inter-state outward supply and no input tax credit. Goods may be sold through e-commerce operators (allowed from 1 October 2023, subject to conditions), but services through e-commerce operators are not allowed.
• Not available to manufacturers of notified goods such as ice cream, pan masala and tobacco.
• Option is taken in CMP-02 before the start of the financial year; returns are CMP-08 (quarterly) and GSTR-4 (annual).

Overall Summary: Limit is Rs 1.5 crore (Rs 75 lakh in specified states) for goods and Rs 50 lakh for services; tax is 1% for traders/manufacturers, 5% for restaurants and 6% only for service providers.

 

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