08 August 2020
For a shop with quite low turnover , it is better to opt for composition scheme but please be mindful that it comes with severe restrictions.The major ones are- Cannot supply interstate – goods and services.
1.Cannot make export of/supply to SEZ, goods or services
2.Goods supplier cannot supply more than 10% services.
3.Cannot sell through e-commerce operator websites (say Amazon) who is collecting TCS.
4.Loose out on ITC of the GST paid on purchases of goods/services
5.Customers may insist on tax invoice with GST to claim ITC.
So it all depends on your expansion plans and customer base and plans.you will see a useful article on this in next couple of days. I am just in the process of finalising it.
CAclubindia
