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India
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Beginner
The shortest, most direct list of everything composition takes away: no ITC, no ability to charge GST on your invoice, no e-commerce. A good final gut check before you register.
GST Composition Scheme Disadvantages
From Learn by Quicko
- A composition business cannot sell through any e-commerce platform and must register regular if it wants to
- No input tax credit on any purchase, including ads, packaging, and shipping
- Cannot charge GST to customers, only issues a bill of supply
- Wrongful opt-in carries a penalty of up to 100 percent of the tax liability