Article

GST Composition Scheme Disadvantages

Learn by Quicko Free Beginner India

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.

  • 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
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The question it answers

  1. I'm a small maker just starting out, does the GST composition scheme make sense for me?

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