Once a creator crosses the GST registration threshold, the composition scheme is worth a look before defaulting into regular GST registration. It trades a lower tax rate and much lighter filing for a couple of real restrictions, and whether that trade makes sense depends on how your business actually runs.
Service providers, which is what a creator invoicing brands legally is, can opt into the composition scheme under Section 10(2A) if aggregate turnover stayed under ₹50 lakh in the preceding financial year. Cross that threshold and you move to regular GST registration going forward.
A flat 6% GST rate (3% CGST + 3% SGST) instead of the usual 18%, charged on your total turnover rather than itemized per invoice. Filing is also lighter: one quarterly statement (CMP-08) and a single annual return (GSTR-4), instead of the monthly filings regular GST registration requires.
The main one is input tax credit. If you're paying GST on equipment, software subscriptions, or editing services and currently claiming that back, the composition scheme removes that option entirely, since you're not allowed to claim ITC on your purchases under the scheme.
You also can't issue a tax invoice with GST broken out for brands that want to claim ITC on what they pay you. Some larger brands specifically prefer vendors who can offer that, so it's worth checking whether that matters to the brands you typically work with before opting in.
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