A supplier of goods whose turnover is less than 1.5 crore can opt for composition scheme. Such person cannot claim input tax credit. If one needs to claim input tax credit than he has to surrender from the composition scheme. Following are the benefits and limitations of composition scheme under GST.
Benefits:
- Less compliance
- Lower tax rate
- High liquidity
Limitations:
- No Inter State Transactions
- No Input Tax Credit
- No Business through E-commerce Portal
- No supply of Exempt Goods
- Cannot charge Tax
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