Is GST applicable for composition scheme?

Composition Scheme is a simple and easy scheme under GST for taxpayers. Small taxpayers can get rid of tedious GST formalities and pay GST at a fixed rate of turnover. This scheme can be opted by any taxpayer whose turnover is less than Rs. 1.5 crore*.

Can composition dealer collect tax from customers?

Ans. No as the composition dealer cannot collect tax paid by him on outward supplies from his customers, the registered person making purchases from a taxable person paying tax under the composition scheme cannot avail credit.

Is RCM applicable on purchase from composition dealer?

A Composition Dealer has to pay tax under Reverse Charge Mechanism (‘RCM’) wherever applicable. This means that rate under composition scheme should not be used for reverse charge purposes. Also, no ITC is available for tax paid under reverse charge for a composition dealer.

Is reverse charge applicable on purchase from unregistered dealer?

As per Sec 9(4) of CGST Act, if a registered person purchases goods/services from an unregistered dealer (URD) then the registered taxpayer is liable to pay GST on reverse charge basis( only for certain goods/services & registered persons). …

What is reverse charge mechanism under GST?

Generally, the supplier of goods or services is liable to pay GST. Reverse Charge means the liability to pay tax is on the recipient of supply of goods or services instead of the supplier of such goods or services in respect of notified categories of supply.

Can Composite dealer charge GST?

Yes. Composition dealers cannot charge GST on their sales in the bill of supply.

How do I claim reverse charge input in GST?

B. The registered buyer who has to pay GST under reverse charge has to do self-invoicing for the purchases made. In intra-state purchases, CGST and SGST have to be paid under reverse charge mechanism (RCM) by the purchaser. Also, in the case of inter-state purchases, the buyer has to pay the IGST.