Last Updated on: 6th August 2026, 02:28 pm
Company GST Set Up for Composition Dealer
GST Set Up for a Composition Dealer in TallyPrime
The process is mostly similar to Regular Dealer, but is relatively simpler. Only the special features applicable to Composition Dealer are discussed, skipping the common features already explained in earlier chapter, avoiding repetition.
Company GST Details Set up for Composition Dealer
Company GST Setup for Composition Dealers
At GST details screen, set as follows :
- Registration Type: At GST Details screen, select Composition at Registration type
- State : Select the state from list
- Place of Supply : Select the Sate from list
- GST/ UIN : Enter the GST/UIN correctly.
Tax Rate Details for Turnover : Select the Tax calculation rule from list
- Taxable, Exempt and Nil rated values: Tax is calculated on the total of all taxable, exempt, and nil-rated sales.
- Taxable: Tax is calculated only on the total of taxable sales.
For inward supplies, the total value of purchases under reverse charge is always considered part of the taxable value.
Composition Dealer GST Details Configuration
Key Differences in Setup: Regular vs. Composition Dealer
The following table highlights the primary differences in the Company GST Setup screens and operational configurations between the two registration types:
| Feature / Field | Regular Dealer Setup | Composition Dealer Setup |
| Registration Type | Selected as Regular. | Selected as Composition. |
| Tax Rate Field | No single fixed rate is defined at the company level for turnover. | A Tax rate for taxable turnover field is provided (default 1%). |
| Basis for Calculation | Not applicable; tax is calculated based on Item rates. | Includes a Basis for tax calculation (Taxable vs. Total Turnover). |
| GSTR-1 Periodicity | Must specify Monthly or Quarterly filing. | Not applicable, CMP-08 and GSTR-4 are submitted |
| Purchase Tax Treatment | GST on purchases is tracked for Input Tax Credit (ITC). | Composition dealer cannot claim ITC; any GST paid on purchases (even for taxable goods) is added to the item cost or expenses |
| Invoice Titles | Invoices are typically titled Tax Invoice. | Invoices are automatically updated to Bill of Supply as per GST rules. |
| GST Tax Ledgers | Required in sales vouchers to charge tax to customers. | No tax ledgers are used in sales; tax is paid “out of pocket” by the dealer. |
When switching from Regular to Composition in TallyPrime, the software retains the applicability date of the previous regular registration, though it can be changed it as required. Existing data remains safe, and only new transactions recorded after the switch follow the Composition setup rules.
