What the composition scheme means for you
The composition scheme lets eligible small businesses pay GST at a fixed rate on turnover, with simpler returns. In exchange, composition dealers issue a bill of supply instead of a tax invoice, cannot collect GST from customers, cannot claim input tax credit, and cannot make inter-state sales of goods (and businesses under the composition scheme for services cannot make any inter-state supplies).
It usually suits small traders, manufacturers and restaurants whose customers are mostly consumers, not businesses that need GST invoices. Whether it is right for you depends on your turnover, what you sell and who you sell to. Send us your details and we’ll explain the trade-offs.
Your composition compliance calendar
- CMP-08: a quarterly statement and tax payment, due by the 18th of the month after each quarter (for example, 18 January for October–December).
- GSTR-4: once a year.
Paying CMP-08 late means interest on the tax paid late, and a late GSTR-4 brings a late fee. If you keep missing them, e-way bills can be blocked and your registration can be cancelled. Staying on time is simpler with reminders and someone keeping your books.
What’s included in Hive Composition
- Quarterly CMP-08 preparation and filing
- Yearly GSTR-4 preparation and filing
- Bookkeeping and ledgers for up to 150 invoices a quarter (sales and purchases together)
- Due-date reminders on WhatsApp
- The filing acknowledgement after every return
Price: ₹1,799/quarter + GST, or ₹6,490/year + GST paid yearly (save ₹706).
How it works
- WhatsApp us your GSTIN and the last return you filed.
- Send your sales and purchase bills each month or each quarter, on WhatsApp, by email or on paper.
- We keep your books, work out the tax, file CMP-08 every quarter and GSTR-4 once a year, and send you the acknowledgement.
Thinking of moving in or out of composition?
If your business is growing, starting to sell to other businesses or planning inter-state sales, the regular scheme may suit you better. We can look at your numbers and explain both options. Regular filers can see Hive 50 and Hive 100. New business? Start with GST registration.