{"id":4206,"date":"2026-05-29T20:51:06","date_gmt":"2026-05-29T20:51:06","guid":{"rendered":"https:\/\/aaxonix.com\/resources\/?post_type=glossary&#038;p=4206"},"modified":"2026-05-29T20:51:06","modified_gmt":"2026-05-29T20:51:06","slug":"composite-scheme-gst-zoho-books","status":"publish","type":"glossary","link":"https:\/\/aaxonix.com\/resources\/glossary\/composite-scheme-gst-zoho-books\/","title":{"rendered":"Composite Scheme (GST)"},"content":{"rendered":"<style>.gt-body{font-family:'Poppins',sans-serif;color:#111;line-height:1.75}.gt-def{border-left:4px solid #E8650A;padding:16px 20px;background:#fff8f4;border-radius:0 8px 8px 0;margin:0 0 32px;font-size:1.05rem}.gt-section{margin:0 0 36px}.gt-section h2{font-family:'Fraunces',serif;color:#0A1628;font-size:1.5rem;margin:0 0 12px}.gt-example-box{background:#f0f4ff;border-radius:10px;padding:20px 24px;margin:0 0 32px}.gt-example-box strong{color:#2563EB}.gt-related-pills{display:flex;flex-wrap:wrap;gap:10px;margin:0 0 32px}.gt-related-pill{background:#f7f4ef;border:1px solid #ddd8cf;border-radius:20px;padding:6px 16px;font-size:.875rem;color:#0A1628;text-decoration:none}.gt-faq-item{border:1px solid #ddd8cf;border-radius:10px;padding:16px 20px;margin:0 0 12px}<\/style>\n<div class=\"gt-body\">\n<div class=\"gt-def\">The GST Composite Scheme in Zoho Books is the simplified GST regime for eligible small businesses that pay a flat-rate GST on turnover without the complexity of input tax credit tracking, identified in Zoho Books by the Registered Composition GST treatment for contacts.<\/div>\n<div class=\"gt-section\">\n<h2>Who Can Register Under the Composition Scheme<\/h2>\n<p>The Composition Scheme is available to manufacturers, traders, and restaurant services with annual turnover up to INR 1.5 crores (INR 75 lakhs for special category states). Service providers other than restaurants can avail a similar scheme up to INR 50 lakhs under the CGST Act amendment. Key restrictions: composition dealers cannot issue tax invoices, cannot charge GST from customers, cannot claim input tax credit, and cannot make inter-state supplies.<\/p>\n<\/div>\n<div class=\"gt-section\">\n<h2>Setting Up a Composition Dealer in Zoho Books<\/h2>\n<p>If your organisation is a composition dealer, configure your GST settings in Zoho Books to enable the composition scheme. This prevents GST from being calculated on your outgoing invoices and generates a &#8220;Bill of Supply&#8221; instead of a tax invoice. Your flat-rate GST payment is recorded as a periodic expense or a journal entry, not as output tax on individual invoices.<\/p>\n<p>If a vendor is a composition dealer, set their GST treatment to &#8220;Registered Composition&#8221; in their Zoho Books contact record. Zoho Books will then exclude any ITC from their bills (since composition dealers cannot issue tax invoices with GST), preventing you from incorrectly claiming ITC that is not available.<\/p>\n<\/div>\n<div class=\"gt-section\">\n<h2>Composition Scheme and GSTR-4<\/h2>\n<p>Composition dealers file GSTR-4 annually (with CMP-08 quarterly for tax payment). Zoho Books does not specifically generate GSTR-4 for composition dealers, but the sales and purchase data recorded in Zoho Books can be used to prepare GSTR-4 manually or with the help of your CA. The simplicity of the scheme means fewer GST reports are required.<\/p>\n<\/div>\n<div class=\"gt-example-box\"><strong>Industry:<\/strong> Retail \u2014 A Pune kirana store with annual turnover of INR 90 lakhs is registered under the Composition Scheme. It uses Zoho Books to issue Bills of Supply (without charging GST to customers), track inventory, and record expenses. The owner pays flat-rate GST quarterly and files GSTR-4 annually, spending minimal time on GST compliance.<\/div>\n<div class=\"gt-related-pills\"><a href=\"https:\/\/aaxonix.com\/resources\/glossary\/gst-zoho-books\/\" class=\"gt-related-pill sp-content-link\">GST<\/a><a href=\"https:\/\/aaxonix.com\/resources\/glossary\/gst-treatment-zoho-books\/\" class=\"gt-related-pill sp-content-link\">GST Treatment<\/a><a href=\"https:\/\/aaxonix.com\/resources\/glossary\/input-tax-credit-itc-zoho-books\/\" class=\"gt-related-pill sp-content-link\">Input Tax Credit<\/a><a href=\"https:\/\/aaxonix.com\/resources\/glossary\/invoice-zoho-books\/\" class=\"gt-related-pill sp-content-link\">Invoice<\/a><\/div>\n<div class=\"gt-faq-item\"><strong>What is Composite Scheme (GST) in Zoho Books?<\/strong><\/p>\n<p>The GST Composite Scheme in Zoho Books is the simplified tax regime for small businesses paying a flat-rate GST. Composition dealers are set up with Registered Composition GST treatment, preventing ITC claims on their bills.<\/p>\n<\/div>\n<div class=\"gt-faq-item\"><strong>Can a composition dealer use Zoho Books?<\/strong><\/p>\n<p>Yes. A composition dealer raises Bills of Supply (not tax invoices) in Zoho Books without charging GST to customers. If a vendor is a composition dealer, set their GST treatment to Registered Composition and do not claim ITC on their bills.<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The GST Composite Scheme in Zoho Books is the simplified GST regime for eligible small businesses that pay a flat-rate GST on\u2026<\/p>\n","protected":false},"template":"","meta":{"seo_title":"Composite Scheme (GST) | Zoho Books Glossary","seo_description":"The GST Composite Scheme is for small businesses with simplified tax rules. Learn how Zoho Books handles composition dealers as customers and vendors.","seo_keyword":"composite scheme gst zoho books","seo_faqs":"[{\"q\": \"What is Composite Scheme (GST) in Zoho Books?\", \"a\": \"The GST Composite Scheme in Zoho Books refers to the simplified tax scheme for small businesses with annual turnover up to INR 1.5 crores (for goods dealers), where the business pays GST at a flat rate without maintaining detailed GST records. In Zoho Books, composition dealers are identified by setting their GST treatment to 'Registered Composition'.\"}, {\"q\": \"Can a composition dealer use Zoho Books?\", \"a\": \"Yes, but with restrictions. A composition dealer cannot charge GST on their customer invoices (they pay GST from their own pocket at a flat rate). In Zoho Books, if your organisation is a composition dealer, you raise invoices without GST. If a vendor is a composition dealer, you set their GST treatment to Registered Composition and do not claim ITC on their bills.\"}]","term_type":"Business","glossary_related":"","glossary_links":""},"glossary_category":[1246],"class_list":["post-4206","glossary","type-glossary","status-publish","hentry","glossary_category-zoho-books"],"_links":{"self":[{"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/glossary\/4206","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/glossary"}],"about":[{"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/types\/glossary"}],"wp:attachment":[{"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/media?parent=4206"}],"wp:term":[{"taxonomy":"glossary_category","embeddable":true,"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/glossary_category?post=4206"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}