Disadvantages of composition scheme :
The composition scheme is simple. Small taxable persons are not required to maintain elaborate records of receipt of supplies of goods and services. This results in cost saving to them.
For GST department also, assessment is easy. However, the taxable person under composition scheme cannot avail any input tax credit. He cannot charge GST in his invoice. Hence, customer of such taxable person cannot avail the input tax credit. Thus, the Vat chain is lost and input credit is lost.
Hence, the scheme is mainly useful to taxable persons who are making direct supplies to consumers who cannot avail any input credit, or to those cannot maintain detailed records required for input tax credit purposes