Regular scheme vs composition scheme

Choosing between the regular GST scheme and the composition scheme is mostly about one question: do you want simplicity, or do you need the flexibility of normal GST invoicing and input credit?

Regular scheme

• You charge GST normally on invoices.
• You can claim input tax credit.
• You can usually sell B2B more easily because customers get credit.
• Compliance is heavier.

Composition scheme

• You pay a lower fixed tax on turnover.
• You cannot claim ITC.
• You issue a bill of supply, not a tax invoice.
• Compliance is lighter, but business flexibility is lower.

A practical rule

If most customers are businesses, regular GST is usually the better fit. If most customers are local consumers and paperwork is your main pain, composition may be worth evaluating with your CA.