Goods and Services Tax is set to bring along a new regime of business compliance in India. Large organizations have the requisite resources and expertise to address these requirements. On the flip side, many startups and Small and Medium Enterprises (SMEs) may struggle to comply with these provisions. To resolve such scenarios, the government has introduced Composition Scheme under GST, which is merely an extension of the current scheme under VAT law.
This scheme has many conditions. Pls have a look. No ITC. Pay Reverse charge on URD purchase including expenses involving any goods or services. No Composition for service provider except Food in Restaurant. No inter-state sale. etc. Probable high costing due to no ITC. Benefit in Compliances.