PhyntaraTutorial · GST · Understand GST
04 · Regular, composition, and QRMP
Three ways to live inside GST. Pick once with your CA. Phyntara reads the choice from Letterhead and will not let a composition company issue a tax invoice with GST. About 8 min. As of August 2026.
This tutorial explains GST the way a new founder or accounts clerk needs it, and how the same work is done in Phyntara. It is teaching, not a legal opinion. Thresholds, due dates, and late fees change when the GST Council notifies them. Your CA files. Confirm the live rule on gst.gov.in before you act on a rupee.
Regular (normal) taxpayer
This is the default for startups and for anyone whose customers want tax credit. You charge GST at the notified rate, issue a tax invoice, take eligible credit on inward supplies, and file GSTR-1 (sales) and GSTR-3B (summary + payment).
Composition (Section 10) and the service concession (10(2A))
Composition is a simpler tax for small eligible dealers: a lower rate on turnover, paid quarterly, with a bill of supply instead of a tax invoice. The customer generally cannot take ITC on that bill. You cannot make interstate taxable supplies in the main scheme. You cannot collect GST as a separate line in the usual way.
| Scheme | Typical turnover ceiling (preceding FY) | Who it is for |
|---|---|---|
| Section 10 composition (goods-heavy) | ₹1.5 crore (₹75 lakh in specified states) | Eligible manufacturers / traders — not for most startups |
| Section 10(2A) service concession | ₹50 lakh | Some small service providers — still blocks the ITC story buyers want |
QRMP — small filer on the sales return
If your aggregate annual turnover is up to ₹5 crore, you may be eligible for QRMP: pay tax monthly (PMT-06 / 3B quarterly in the QRMP design), and report sales quarterly, with an optional Invoice Furnishing Facility (IFF) in the first two months of the quarter so your B2B customers still see invoices. Phyntara stores QRMP vs monthly on Letterhead so GSTR-1 JSON and copy stay honest.
QRMP is not composition. You still charge GST and still issue tax invoices.