Composition Scheme vs Regular GST for Kirana

Kirana stores below ₹1.5 Cr turnover can choose composition or regular GST. Here’s the difference.

Composition Scheme

• Turnover – Up to ₹1.5 Cr (₹75 lakh in some states)
• Rate – 1% (trader), 5% (restaurant), 6% (manufacturer)
• Input credit – No. Cannot claim ITC.
• Billing – No tax on invoice. Pay tax on turnover.
• Returns – Quarterly, simpler
• Best for – Small kirana, minimal B2B, mostly cash sales

Regular GST

• Turnover – No limit
• Rate – 0%, 5%, 12%, 18%, 28% per product
• Input credit – Yes. Claim ITC on purchases.
• Billing – Tax on invoice. Pass-through.
• Returns – Monthly
• Best for – B2B customers, want ITC, higher turnover

Kirana Tip

If you sell mostly to consumers (B2C) and turnover is low, composition can be simpler. If you have B2B customers who need ITC, go regular. GST calculator.