Few takers for simple tax for small businesses: A look at Composition Scheme under GST

The objective of the Composition Scheme is to bring in simplicity and to reduce the compliance cost

The introduction of the Goods and Services Tax (GST) has led to a sea change in the taxability of supplies and procedure/compliances to be followed by assessees. GST has also introduced a scheme for the benefit of small businesses called the Composition Scheme. 

The Composition Scheme is not alien to India as it was also present in the now-discontinued VAT regime. This scheme has been mainly introduced to help small businesses run smoothly and reduce the compliance burden on them. The supplier is provided with the option of paying an amount calculated at a prescribed rate of the turnover in