What is the limit of GST Composition Scheme ? 1 Cr. or 1.5 Cr.

GST authority introduced Composition Scheme under GST to give relief to the small taxpayers. It is a very simple scheme and you need to file only one return per quarter (GSTR 4). But there are some limitations under this scheme and all taxpayers are not eligible to register under this scheme.

One of the criteria to take GST Composition Scheme is, Taxpayer’s annual total turnover should be below 1 Cr. But a confusing news already spread in internet that taxpayer, whose annual turnover is below 1.5 Cr. are eligible to register under this scheme. To clear all confusions, let’s read the following Q & A,

Q1. Why some people are saying that the GST Composition Scheme limit is 1.5 Cr.?

A. 23rd GST Council Meeting was held on 10th Nov, 2017. In that meeting, there was a proposal to increase the threshold limit of Composition Scheme from 1 Cr. to 1.5 Cr. But the fact is, proposal is not turned into act till now.

Q2. What is the limit of GST Composition Scheme? 1 Cr or 1.5 Cr?

A. According to existing act, if a taxpayer’s annual total turnover is less than 1 Cr. he is eligible to register under composition scheme.

Q3. Is there any official notification about the turnover limit in GST composition scheme?

A. Please read the Sec. 10 of CGST Act, 2017 (Ammended). Click here to read CGST Act, 2017.

Q4. Is the 1 Cr. turnover limit for GST Composition Scheme applicable to all states?

A. In case of North Eastern States and Himachal Pradesh, the limit is 75 lakh.

So, these are answers of some expected questions about turnover limit in composition scheme. Hope this article clear the confusion.