The composition scheme simplifies compliance but limits input tax credit and interstate B2B sales. Regular GST offers full ITC but requires detailed returns.
Composition advantages
- Lower effective tax rate on turnover
- Quarterly CMP-08 and annual GSTR-4
- Reduced record-keeping for eligible small taxpayers
When regular GST is better
- B2B sales to other states or registered dealers
- Significant input tax credit on purchases
- E-commerce or export-oriented models
Read our composition eligibility guide or consult our GST team.
