To analyse whether a business should register under the composition scheme or not, the following factors should be considered:
Composition Scheme | Regular Scheme | |
| Nature of Customers | Sales to unregistered or composite dealers not ready to pay GST | Sales to registered dealers ready to pay GST |
| Claim Input Tax Credit | Not claim ITC since purchase is from unregistered or composite dealers | Claim ITC of GST paid on purchases from registered dealers |
| Type of Sale | Business making only Intra-state sales | Business making Inter-state sales |
| Goods or Services | Sale of taxable goods or services | Sale of non-taxable goods or services |
| E-Commerce Sales | No plans to sell online through e-commerce portal | Plan to sell online through e-commerce portal |
| Record Keeping | Avoid record keeping and accounting | Maintain accounting and record keeping |