The Goods and Services Tax Act have decided to keep the Composition-Scheme. This scheme aims to minimize the compliance burden for small taxpayers. Any dealer who falls under the prescribed category, if interested can opt to be registered under the composition scheme. Once registered under the composition scheme, the dealer is required to file lesser number of returns, shall not be eligible to take any inputs tax or raise a tax invoice.

Under the GST law following person shall not be eligible to opt for composition scheme:

• Any Taxpayer whose turnover exceeds fifty lakhs.
• Any Taxpayer who is involved in interstate supply or import-export of goods.

Benefits of Composition Scheme:

• Very less compliance, fewer returns to be filled
• Less blockage of funds in form of Input Tax Credit
• Easy computation of Tax Liability