Composition Scheme

byPaytm Editorial TeamLast Updated: December 12, 2025

Meaning & Definition

The composition scheme is a simplified GST system for small businesses. It allows them to pay tax at a fixed rate on turnover instead of detailed tax calculations.

Key Features

  • Simplified GST compliance
  • Limited to small businesses
  • Fixed tax rate on turnover
  • Reduces paperwork

Author

Paytm Editorial Team

The Paytm Editorial Team is a collaborative group of writers, editors, and industry experts. We're dedicated to bringing you the latest insights, news, and guides on digital payments, financial services, and the technology that's shaping India's economy. We offer easy-to-follow guides and insights to help you explore Paytm’s products, features, and services. Our goal is to provide clear, reliable, and helpful information to empower you on your financial journey.

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