In this article, we’re going to take a closer look at the SWOT analysis of the composition scheme.

SWOT analysis of the composition scheme

Pay GST at composite rate No input tax credit on the purchases
Simplified compliances No interstate supply (i.e. between states)
Minimal GST records Cannot supply through e-commerce (except own website)
Quarterly payment of GST, ensures high liquidity Restriction on Manufacturing of notified goods
Limited book keeping Limited territorial scope
Reduced compliance cost Restricted supply of service
No need of classification of GST rates
More B2C sale (i.e. end consumer or unregistered dealer) Loss of business opportunities due to numerous restrictions
Competitive advantage as no tax is charged
No burden on GST taxpayer
More time for business operations