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GST Composition Scheme Compliance Checklist

Eligibility turnover threshold, the categories excluded from composition, the separate 6% composition scheme for services, and the quarterly CMP-08 plus annual GSTR-4 filing rhythm.

Free · CORAA original — SA-aligned
Updated 28 Jul 2026
Goods threshold
₹1.5 crore (verify current figure; lower in special-category states)
Services variant
Separate ~6% scheme, own threshold — don't assume the goods threshold
ITC
Not available while under composition
Filing
CMP-08 quarterly, GSTR-4 annually
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GST COMPOSITION SCHEME COMPLIANCE CHECKLIST

Entity: ___ · GSTIN: ___ · Financial year ended: ___

A. Eligibility

  • Aggregate turnover in the preceding financial year within the notified composition threshold (verify the current figure — historically ₹1.5 crore for goods, with a lower separate threshold for special-category states).
  • A separate, distinct composition scheme (at a notified rate, historically 6% aggregate — 3% CGST + 3% SGST) is available for suppliers of services or mixed suppliers of goods and services, up to its own notified turnover threshold — do not assume the goods-composition threshold applies to a services/mixed-supply composition taxpayer.
  • Not engaged in any of the excluded categories: supply of goods/services not leviable to tax, inter-state outward supply, supply through an e-commerce operator required to collect TCS, manufacture of notified excluded goods (e.g. certain tobacco/pan masala/ice-cream categories), or a casual taxable person / non-resident taxable person.
  • Composition is opted PAN-wide — all registrations under the same PAN must opt in or out together; a person cannot run one GSTIN under composition and another under the regular scheme.
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Common questions

FAQs.

Can a business under the goods composition scheme also supply services?
A limited value of services (a notified percentage of turnover or a fixed rupee amount, whichever is higher — verify the current figure) is permitted alongside goods under the standard goods-composition scheme. A person predominantly supplying services instead falls under the SEPARATE composition scheme for services/mixed suppliers, which has its own turnover threshold and rate (historically 6% combined) — the two schemes and their thresholds should not be conflated.
Why can't a composition taxpayer supply through an e-commerce platform?
Section 52 requires e-commerce operators to collect tax at source on supplies made through them, which presumes the supplier is a normal registered person capable of that TCS credit flowing into a usable cash-ledger balance and reconciling against outward tax liability — the composition scheme's flat-rate, no-ITC, cannot-collect-tax-from-recipient structure isn't compatible with that mechanism, so the law excludes composition taxpayers from selling through e-commerce operators requiring TCS collection.
What happens if a composition taxpayer's turnover crosses the threshold mid-year?
The option to pay tax under composition lapses with effect from the day the turnover crosses the notified limit, and the taxpayer must file an intimation for withdrawal and switch to normal-scheme compliance (including issuing tax invoices and becoming eligible for ITC prospectively) from that point — it isn't a full-year retroactive disqualification, but it does require prompt transition, not a wait-until-year-end approach.
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