Composition scheme under GST simplifies compliance but disallows input tax credit and restricts interstate trade.
Composition scheme under GST allows eligible small retail dealers to pay tax at a prescribed composition rate and file simplified quarterly and annual returns while accepting restricted compliance: they cannot claim input tax credit, cannot issue tax invoices that enable buyer credits, cannot collect tax separately from customers, and the scheme is available only for intra-state supplies subject to an aggregate turnover threshold; it also provides relaxed record-keeping and limited aggregation rules for small cash sales and purchases from unregistered suppliers. (AI Summary)