Should I register under the Composition Scheme in GST?

By Sakshi Shah on June 4, 2019

When the aggregate turnover of a business exceeds the threshold limit of registration under GST, they need to take a compulsory registration. Such business can take benefit of the Composition Scheme under GST. It is a voluntary scheme under which there is less compliance

What is Composition Scheme under GST?

It is important to note that a business must fulfil certain conditions to opt for registration under the composition scheme.

Who can opt for Composition Scheme under GST?

To analyse whether a business should register under the composition scheme or not, the following factors should be considered: 

Opt for GST Composition Scheme
Opt for GST Regular Scheme
Nature of CustomersGoods or services are supplied to unregistered dealers or composite dealers who are not ready to pay GSTGoods or services are supplied to registered dealers who are ready to pay GST
Claim Input Tax CreditBusiness does not wish to claim input tax credit since the majority of purchase is from unregistered dealers or composite dealers  Business wishes to claim the input tax credit of GST paid on purchases from registered dealers
Type of SalesA business making only Intra-state sales i.e. sales within the state of registration  A business making Inter-state sales i.e. sales outside the state of registration and exports  
Goods or ServicesBusiness dealing in the sale of taxable goods or restaurant services  Business dealing in the sale of non-taxable goods or services other than restaurant services  
E-Commerce SalesThe dealer has no plans to sell goods or services online through an e-commerce portal  Dealer plans to sell goods or services online through an e-commerce portal  
Record KeepingBusiness wants to avoid record keeping and accounting  Business can maintain accounting and record keeping