Understanding Composite GST in India

Understanding Composite GST in India

Blog Article

The Composite GST in India is a simplified tax scheme designed for small businesses to ease compliance and reduce tax burdens. Under this scheme, businesses with an annual turnover of up to ₹1.5 crore (₹75 lakh for specific states) can opt for a fixed percentage of their turnover as tax instead of following the regular GST process. This helps reduce paperwork and compliance costs. However, businesses registered under the Composite GST in India cannot claim input tax credit or engage in interstate trade. Understanding its benefits, eligibility, and limitations is crucial for small businesses seeking tax efficiency and simplified compliance.