GST COMPOSITION SCHEME

Small taxpayers with an annual aggregate turnover up to INR 1.5 crores (INR 75 lakhs for special category states)

Lower GST rates based on the type of business (e.g., manufacturers, traders, restaurants)

Not eligible for ITC

Quarterly GST returns (GSTR-4) need to be filed

Not allowed

Quarterly payment of GST based on GSTR-4 returns

Lower compliance requirements compared to the regular scheme

GST annual return (GSTR-9A) required

Penalties are generally lower compared to the regular scheme

Designed for small businesses with a limited product/service range

Transition to regular scheme required if turnover exceeds threshold

GST QRMP SCHEME

Businesses with an aggregate annual turnover of up to INR 5 crores

Regular GST rates apply

Eligible for ITC on GST paid on purchases of goods/services

Quarterly GST returns (GSTR-1 and GSTR-3B) need to be filed

Allowed with the usual IGST

Quarterly payment of GST based on GSTR-3B and GSTR-1 returns

Reduced compliance compared to the regular scheme due to quarterly returns and monthly payments

GST annual return (GSTR-9) required

Penalties may be lower due to reduced frequency of returns

Suited for businesses with a moderate turnover looking for reduced compliance

Transition to regular scheme possible if turnover exceeds threshold