1. Less Record-Keeping - Detailed records and accounts are not required to be maintained

  2. Less Returns - While other taxpayers need to file monthly returns, composite dealer needs to file only quarterly returns (GSTR-4)

  3. Limited Tax Liability - Tax liability is 1%, 2%, 5% or 6% of turnover which is negligible in comparison to regular dealers paying GST at 5%, 12%, 18% or 28%

  4. High Liquidity - Payment of tax is done every quarter. Thus, there would be an easy flow of funds with high liquidity

  5. Competitive Advantage - Dealer cannot collect tax from customers. They can sell goods at lesser price than competitors who charge GST from customers

Read more - What are advantages of registering under Composition Scheme in GST?