Can composition dealers charge tax?

A composition dealer cannot issue a tax invoice. This is because a composition dealer cannot charge tax from their customers. They need to pay tax out of their own pocket. The dealer should also mention “composition taxable person, not eligible to collect tax on supplies” at the top of the Bill of Supply.

Can a person paying tax under the composition scheme issue a tax invoice under GST?

This tax has to be paid on quarterly basis. However, upon opting for this scheme, he cannot issue taxable invoice under GST law and can neither collect GST from his customers nor can claim Input Tax credit on his purchases.

Who will pay tax under RCM?

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 a registered person in GST under composite scheme claim ITC?

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.

Can composition scheme be availed if the registered person affects interstate supplies?

Solution(By Examveda Team) No, composition scheme is applicable subject to the condition that the taxable person does not affect inter- state supplies.

Can registered dealer purchase from composition dealer?

Yes: There is no such restriction on composition dealers to purchase goods only from registered dealers. Therefore, a composition dealer can purchase goods from unregistered dealers.

Can a composition dealer under GST purchase from other states?

Yes, any dealer under composition scheme can purchase goods from other state. he cannot sell goods outside the state. Which means he should not be involved in interstate outward supplies.

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