{"id":16787,"date":"2026-03-13T05:44:47","date_gmt":"2026-03-13T05:44:47","guid":{"rendered":"https:\/\/www.legalserviceindia.com\/Legal-Articles\/?p=16787"},"modified":"2026-03-13T05:51:25","modified_gmt":"2026-03-13T05:51:25","slug":"difference-between-gst-composition-scheme-regular-scheme","status":"publish","type":"post","link":"https:\/\/www.legalserviceindia.com\/Legal-Articles\/difference-between-gst-composition-scheme-regular-scheme\/","title":{"rendered":"Difference Between GST Composition Scheme &amp; Regular Scheme"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\" id=\"gst-composition-vs-regular-scheme\"><span class=\"ez-toc-section\" id=\"GST_Gives_Two_Broad_Forms_Of_Registrations_To_Taxpayers_In_India\"><\/span>GST Gives Two Broad Forms Of Registrations To Taxpayers In India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>GST gives two broad forms of registrations to taxpayers in India: the Composition Scheme and Regular Scheme. Selection of appropriate schemes is important, as it would have a direct impact on the tax rates, compliance price, and business.<\/p><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #0c0c0c;color:#0c0c0c\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #0c0c0c;color:#0c0c0c\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/difference-between-gst-composition-scheme-regular-scheme\/#GST_Gives_Two_Broad_Forms_Of_Registrations_To_Taxpayers_In_India\" >GST Gives Two Broad Forms Of Registrations To Taxpayers In India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/difference-between-gst-composition-scheme-regular-scheme\/#What_Is_The_GST_Composition_Scheme\" >What Is The GST Composition Scheme?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/difference-between-gst-composition-scheme-regular-scheme\/#Objective_Of_The_Composition_Scheme\" >Objective Of The Composition Scheme<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/difference-between-gst-composition-scheme-regular-scheme\/#What_Is_The_GST_Regular_Scheme\" >What Is The GST Regular Scheme?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/difference-between-gst-composition-scheme-regular-scheme\/#Eligibility_Criteria\" >Eligibility Criteria<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/difference-between-gst-composition-scheme-regular-scheme\/#Composition_Scheme_Eligibility\" >Composition Scheme Eligibility<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/difference-between-gst-composition-scheme-regular-scheme\/#Regular_Scheme_Eligibility\" >Regular Scheme Eligibility<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/difference-between-gst-composition-scheme-regular-scheme\/#Tax_Rates_Under_Both_Schemes\" >Tax Rates Under Both Schemes<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/difference-between-gst-composition-scheme-regular-scheme\/#Composition_Scheme_Tax_Rates\" >Composition Scheme Tax Rates<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/difference-between-gst-composition-scheme-regular-scheme\/#Regular_Scheme_Tax_Rates\" >Regular Scheme Tax Rates<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/difference-between-gst-composition-scheme-regular-scheme\/#Input_Tax_Credit_ITC\" >Input Tax Credit (ITC)<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/difference-between-gst-composition-scheme-regular-scheme\/#Composition_Scheme\" >Composition Scheme<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/difference-between-gst-composition-scheme-regular-scheme\/#Regular_Scheme\" >Regular Scheme<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/difference-between-gst-composition-scheme-regular-scheme\/#GST_Returns_Filing\" >GST Returns Filing<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/difference-between-gst-composition-scheme-regular-scheme\/#Composition_Scheme_Returns\" >Composition Scheme Returns<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/difference-between-gst-composition-scheme-regular-scheme\/#Regular_Scheme_Returns\" >Regular Scheme Returns<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/difference-between-gst-composition-scheme-regular-scheme\/#Invoice_Requirements\" >Invoice Requirements<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/difference-between-gst-composition-scheme-regular-scheme\/#Composition_Scheme-2\" >Composition Scheme<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/difference-between-gst-composition-scheme-regular-scheme\/#Regular_Scheme-2\" >Regular Scheme<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/difference-between-gst-composition-scheme-regular-scheme\/#Inter-State_Supply\" >Inter-State Supply<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/difference-between-gst-composition-scheme-regular-scheme\/#Compliance_Burden\" >Compliance Burden<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/difference-between-gst-composition-scheme-regular-scheme\/#Composition_Scheme-3\" >Composition Scheme<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/difference-between-gst-composition-scheme-regular-scheme\/#Regular_Scheme-3\" >Regular Scheme<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/difference-between-gst-composition-scheme-regular-scheme\/#Advantages_And_Disadvantages\" >Advantages And Disadvantages<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/difference-between-gst-composition-scheme-regular-scheme\/#Advantages_Of_The_Composition_Scheme\" >Advantages Of The Composition Scheme<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/difference-between-gst-composition-scheme-regular-scheme\/#Disadvantages_Of_The_Composition_Scheme\" >Disadvantages Of The Composition Scheme<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/difference-between-gst-composition-scheme-regular-scheme\/#Advantages_Of_The_Regular_Scheme\" >Advantages Of The Regular Scheme<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-28\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/difference-between-gst-composition-scheme-regular-scheme\/#Disadvantages_Of_The_Regular_Scheme\" >Disadvantages Of The Regular Scheme<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-29\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/difference-between-gst-composition-scheme-regular-scheme\/#Difference_Between_GST_Composition_Scheme_Regular_Scheme_Comparison_Table\" >Difference Between GST Composition Scheme &amp; Regular Scheme (Comparison Table)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-30\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/difference-between-gst-composition-scheme-regular-scheme\/#Which_Scheme_Is_Better_Composition_Or_Regular\" >Which Scheme Is Better: Composition Or Regular?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-31\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/difference-between-gst-composition-scheme-regular-scheme\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n\n\n\n\n<p>The article defines the difference between GST Composition Scheme and Regular Scheme on crucial factors, such as eligibility, tax rates, returns, benefits, and lacunae, and has been presented in tabular form for a better view.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what-is-gst-composition-scheme\"><span class=\"ez-toc-section\" id=\"What_Is_The_GST_Composition_Scheme\"><\/span>What Is The GST Composition Scheme?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The scheme of Goods and Service Tax Composition is designed in such a way that it provides relief to the small taxpayers, hence minimising the burden on them. In this scheme, the tax is collected on a lower percentage of the turnovers, and the number of returns is reduced.<\/p>\n\n\n\n<p>The scheme is not compulsory and can be completed during registration or towards the beginning of the financial year.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"objective-of-composition-scheme\"><span class=\"ez-toc-section\" id=\"Objective_Of_The_Composition_Scheme\"><\/span>Objective Of The Composition Scheme<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Reduce compliance burden for small businesses<\/li>\n\n\n\n<li>Simplify GST return filing<\/li>\n\n\n\n<li>Lower tax liability at a fixed rate<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what-is-gst-regular-scheme\"><span class=\"ez-toc-section\" id=\"What_Is_The_GST_Regular_Scheme\"><\/span>What Is The GST Regular Scheme?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Regular GST Scheme is the scheme used by the majority of businesses in South Africa. In this case, the taxpayers impose a GST on their invoices and receive tax revenue along with a benefit through ITCs.<\/p>\n\n\n\n<p>This plan will be achieved through record-keeping and filing returns on a regular basis.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"eligibility-criteria\"><span class=\"ez-toc-section\" id=\"Eligibility_Criteria\"><\/span>Eligibility Criteria<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"composition-scheme-eligibility\"><span class=\"ez-toc-section\" id=\"Composition_Scheme_Eligibility\"><\/span>Composition Scheme Eligibility<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Annual turnover does not exceed the prescribed limit (generally \u20b91.5 crore; \u20b975 lakh for certain special category states)<\/li>\n\n\n\n<li>The business is not involved in inter-state outward supplies<\/li>\n\n\n\n<li>The business does not provide goods through e-commerce services that are liable to collect TCS<\/li>\n\n\n\n<li>The business is not a manufacturer of notified goods (such as ice cream, pan masala, tobacco, etc.)<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"regular-scheme-eligibility\"><span class=\"ez-toc-section\" id=\"Regular_Scheme_Eligibility\"><\/span>Regular Scheme Eligibility<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Applicable to all businesses registered under GST<\/li>\n\n\n\n<li>Mandatory if turnover exceeds the composition scheme threshold<\/li>\n\n\n\n<li>Mandatory for inter-state suppliers and e-commerce sellers<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"tax-rates-under-both-schemes\"><span class=\"ez-toc-section\" id=\"Tax_Rates_Under_Both_Schemes\"><\/span>Tax Rates Under Both Schemes<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"composition-scheme-tax-rates\"><span class=\"ez-toc-section\" id=\"Composition_Scheme_Tax_Rates\"><\/span>Composition Scheme Tax Rates<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Manufacturers &amp; Traders:<\/strong> 1% (0.5% CGST + 0.5% SGST)<\/li>\n\n\n\n<li><strong>Restaurants (not serving alcohol):<\/strong> 5%<\/li>\n\n\n\n<li><strong>Service Providers (under special composition scheme):<\/strong> 6%<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"regular-scheme-tax-rates\"><span class=\"ez-toc-section\" id=\"Regular_Scheme_Tax_Rates\"><\/span>Regular Scheme Tax Rates<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Under the Regular Scheme, GST is charged according to applicable slabs:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>5%<\/li>\n\n\n\n<li>12%<\/li>\n\n\n\n<li>18%<\/li>\n\n\n\n<li>28%<\/li>\n<\/ul>\n\n\n\n<p>Depending upon the goods or services.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"input-tax-credit-itc\"><span class=\"ez-toc-section\" id=\"Input_Tax_Credit_ITC\"><\/span>Input Tax Credit (ITC)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"composition-scheme-itc\"><span class=\"ez-toc-section\" id=\"Composition_Scheme\"><\/span>Composition Scheme<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Input Tax Credit (ITC) is NOT allowed<\/li>\n\n\n\n<li>Purchasing tax is an expense to the company.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"regular-scheme-itc\"><span class=\"ez-toc-section\" id=\"Regular_Scheme\"><\/span>Regular Scheme<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>ITC is allowed on eligible purchases<\/li>\n\n\n\n<li>Helps reduce overall tax liability<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"gst-returns-filing\"><span class=\"ez-toc-section\" id=\"GST_Returns_Filing\"><\/span>GST Returns Filing<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"composition-scheme-returns\"><span class=\"ez-toc-section\" id=\"Composition_Scheme_Returns\"><\/span>Composition Scheme Returns<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>CMP-08:<\/strong> Quarterly statement of tax payment<\/li>\n\n\n\n<li><strong>GSTR-4:<\/strong> Annual return<\/li>\n<\/ul>\n\n\n\n<p>Compliance is minimal and easy.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"regular-scheme-returns\"><span class=\"ez-toc-section\" id=\"Regular_Scheme_Returns\"><\/span>Regular Scheme Returns<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>GSTR-1:<\/strong> Monthly\/Quarterly outward supplies<\/li>\n\n\n\n<li><strong>GSTR-3B:<\/strong> Monthly summary return<\/li>\n\n\n\n<li><strong>Annual Return (GSTR-9)<\/strong><\/li>\n<\/ul>\n\n\n\n<p>Compliance is more detailed and frequent.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"invoice-requirements\"><span class=\"ez-toc-section\" id=\"Invoice_Requirements\"><\/span>Invoice Requirements<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"composition-scheme-invoice\"><span class=\"ez-toc-section\" id=\"Composition_Scheme-2\"><\/span>Composition Scheme<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Cannot issue tax invoice<\/li>\n\n\n\n<li>Must issue Bill of Supply<\/li>\n\n\n\n<li>Cannot collect GST from customers<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"regular-scheme-invoice\"><span class=\"ez-toc-section\" id=\"Regular_Scheme-2\"><\/span>Regular Scheme<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Can issue Tax Invoice<\/li>\n\n\n\n<li>Can collect GST from customers<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"interstate-supply\"><span class=\"ez-toc-section\" id=\"Inter-State_Supply\"><\/span>Inter-State Supply<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Scheme<\/th><th>Inter-State Supply<\/th><\/tr><\/thead><tbody><tr><td>Composition Scheme<\/td><td>Inter-state outward supply is not allowed<\/td><\/tr><tr><td>Regular Scheme<\/td><td>Inter-state supply is allowed<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"compliance-burden\"><span class=\"ez-toc-section\" id=\"Compliance_Burden\"><\/span>Compliance Burden<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"composition-compliance\"><span class=\"ez-toc-section\" id=\"Composition_Scheme-3\"><\/span>Composition Scheme<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Low compliance<\/li>\n\n\n\n<li>Fewer records<\/li>\n\n\n\n<li>Less professional fees<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"regular-compliance\"><span class=\"ez-toc-section\" id=\"Regular_Scheme-3\"><\/span>Regular Scheme<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Higher compliance<\/li>\n\n\n\n<li>Detailed accounting<\/li>\n\n\n\n<li>Higher compliance cost<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"advantages-and-disadvantages\"><span class=\"ez-toc-section\" id=\"Advantages_And_Disadvantages\"><\/span>Advantages And Disadvantages<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"advantages-composition\"><span class=\"ez-toc-section\" id=\"Advantages_Of_The_Composition_Scheme\"><\/span>Advantages Of The Composition Scheme<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Lower tax rates<\/li>\n\n\n\n<li>Simple compliance<\/li>\n\n\n\n<li>Reduced paperwork<\/li>\n\n\n\n<li>Suitable for small businesses<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"disadvantages-composition\"><span class=\"ez-toc-section\" id=\"Disadvantages_Of_The_Composition_Scheme\"><\/span>Disadvantages Of The Composition Scheme<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>No Input Tax Credit<\/li>\n\n\n\n<li>No inter-state sales<\/li>\n\n\n\n<li>Cannot collect GST<\/li>\n\n\n\n<li>Limited business expansion<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"advantages-regular\"><span class=\"ez-toc-section\" id=\"Advantages_Of_The_Regular_Scheme\"><\/span>Advantages Of The Regular Scheme<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Input Tax Credit available<\/li>\n\n\n\n<li>Suitable for growth-oriented businesses<\/li>\n\n\n\n<li>Inter-state and e-commerce sales allowed<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"disadvantages-regular\"><span class=\"ez-toc-section\" id=\"Disadvantages_Of_The_Regular_Scheme\"><\/span>Disadvantages Of The Regular Scheme<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Higher compliance burden<\/li>\n\n\n\n<li>Monthly return filing<\/li>\n\n\n\n<li>Higher professional costs<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"gst-composition-vs-regular-comparison\"><span class=\"ez-toc-section\" id=\"Difference_Between_GST_Composition_Scheme_Regular_Scheme_Comparison_Table\"><\/span>Difference Between GST Composition Scheme &amp; Regular Scheme (Comparison Table)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Basis<\/th><th>Composition Scheme<\/th><th>Regular Scheme<\/th><\/tr><\/thead><tbody><tr><td>Eligibility<\/td><td>Small taxpayers<\/td><td>All taxpayers<\/td><\/tr><tr><td>Turnover Limit<\/td><td>Up to \u20b91.5 crore<\/td><td>No limit<\/td><\/tr><tr><td>Tax Rate<\/td><td>Fixed lower rate<\/td><td>Slab-based rates<\/td><\/tr><tr><td>Input Tax Credit<\/td><td>Not available<\/td><td>Available<\/td><\/tr><tr><td>GST Collection<\/td><td>Not allowed<\/td><td>Allowed<\/td><\/tr><tr><td>Invoice Type<\/td><td>Bill of Supply<\/td><td>Tax Invoice<\/td><\/tr><tr><td>Return Filing<\/td><td>Quarterly &amp; Annual<\/td><td>Monthly\/Quarterly &amp; Annual<\/td><\/tr><tr><td>Inter-State Supply<\/td><td>Not allowed<\/td><td>Allowed<\/td><\/tr><tr><td>Compliance Cost<\/td><td>Low<\/td><td>High<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"which-scheme-is-better\"><span class=\"ez-toc-section\" id=\"Which_Scheme_Is_Better_Composition_Or_Regular\"><\/span>Which Scheme Is Better: Composition Or Regular?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Composition Scheme should be chosen in case you have a small business, are located in one state, and deal primarily with end consumers.<\/p>\n\n\n\n<p>Select the Regular Scheme if you intend to grow, want to serve B2B customers, require ITC, or will serve multiple states.<\/p>\n\n\n\n<p>The choice that is best for you will depend on the size, type, and growth potential of your business.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"conclusion\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The composition scheme of GST is most appropriate for small businesses that want simplicity and low compliance, while the GST regular scheme is appropriate for businesses that want scalability, benefits of ITC, and interstate supply.<\/p>\n\n\n\n<p>Before selecting a GST scheme, businesses must analyze the needs for turnover, customer base, compliance, and long-term goals for GST efficiency and legal compliance.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>GST Gives Two Broad Forms Of Registrations To Taxpayers In India GST gives two broad forms of registrations to taxpayers in India: the Composition Scheme and Regular Scheme. Selection of appropriate schemes is important, as it would have a direct impact on the tax rates, compliance price, and business. The article defines the difference between<\/p>\n","protected":false},"author":247,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_bbp_topic_count":0,"_bbp_reply_count":0,"_bbp_total_topic_count":0,"_bbp_total_reply_count":0,"_bbp_voice_count":0,"_bbp_anonymous_reply_count":0,"_bbp_topic_count_hidden":0,"_bbp_reply_count_hidden":0,"_bbp_forum_subforum_count":0,"two_page_speed":[],"_jetpack_memberships_contains_paid_content":false,"_joinchat":[],"footnotes":""},"categories":[96],"tags":[3386],"class_list":{"0":"post-16787","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-tax-laws","7":"tag-tax-laws"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.legalserviceindia.com\/Legal-Articles\/wp-json\/wp\/v2\/posts\/16787","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.legalserviceindia.com\/Legal-Articles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.legalserviceindia.com\/Legal-Articles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.legalserviceindia.com\/Legal-Articles\/wp-json\/wp\/v2\/users\/247"}],"replies":[{"embeddable":true,"href":"https:\/\/www.legalserviceindia.com\/Legal-Articles\/wp-json\/wp\/v2\/comments?post=16787"}],"version-history":[{"count":0,"href":"https:\/\/www.legalserviceindia.com\/Legal-Articles\/wp-json\/wp\/v2\/posts\/16787\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.legalserviceindia.com\/Legal-Articles\/wp-json\/wp\/v2\/media?parent=16787"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.legalserviceindia.com\/Legal-Articles\/wp-json\/wp\/v2\/categories?post=16787"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.legalserviceindia.com\/Legal-Articles\/wp-json\/wp\/v2\/tags?post=16787"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}