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 Business | Item Type | Total | CGST | SGST |
| Trader | Goods | 1% | 0.5% | 0.5% |
| Manufacturer | Goods | 2% | 1% | 1% |
| Restaurants not serving alcohol | Services | 5% | 2.5% | 2.5% |
| Other Services (effective from 1st April 2019) | Services | 6% | 3% | 3% |
Read more - What is the tax rate under Composition Scheme?