Business registered under Composition Scheme cannot collect GST on sales made to its customers. It cannot claim the input tax credit of GST paid on purchases of goods and services. A composite dealer needs to pay GST to the government at a prescribed rate determined on the nature of its business.

Here are the prescribed rates for different categories of registered suppliers under Composition Scheme:

Nature of BusinessItem TypeTotalCGSTSGST
Restaurants not serving alcoholServices5%2.5%2.5%
Other Services (effective from 1st April 2019)Services6%3%3%

Read more - What is the tax rate under Composition Scheme?