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Composition scheme
Indirect Taxation
If a person registered under CS the supplies must issue bill of supply and need to pay tax from his pocket. If the cs supplier issues bill of supply registered person can get ITC
Answers (19)
Repeat once again,answer this too if a registered person (not registered under composition scheme) may issue invoice cum bill of supply? If a composition scheme registered person must issue bill of supply only whether the goods is taxable or exempted
Aswini Gorige
No cs doesn't collect tax from recipient No tax paid no itc clsim
You mean recipient of composition supplier can't claim ITC, CORRECT?
Thread Starter
Krishna kumarMY ABOUT STATEMENT IS RIGHT?
Basically invoice means tax invoice so how can CS in issue tax invoice ..as he doesn't charge any tax from the customer
Thread Starter
Krishna kumarYou mean recipient of composition supplier can't claim ITC, CORRECT?
Correct refer icai module
Thread Starter
Krishna kumarYou mean recipient of composition supplier can't claim ITC, CORRECT?
No, a Composition Dealer is not allowed to avail input tax credit of GST on purchases. A Composition Dealer has to issue Bill of Supply. They cannot issue a tax invoice. This is because the tax has to be paid by the dealer out of pocket. A Composition Dealer is not allowed to recover the GST from the customers.
Sudha Reddy
No, a Composition Dealer is not allowed to avail input tax credit of GST on purchases. A Composition Dealer has to issue Bill of Supply. They cannot issue a tax invoice. This is because the tax has to be paid by the dealer out of pocket. A Composition Dealer is not allowed to recover the GST from the customers.
But mam in practical the composition dealer will send at MRP so anyways is going to recover gst from the customer....am I Right?
Gauri Shete
But mam in practical the composition dealer will send at MRP so anyways is going to recover gst from the customer....am I Right?
In case of composition registered person, it does not matter at what price he is selling. He Should pay GST from his pocket on the price what he sold.
Gauri Shete
But mam in practical the composition dealer will send at MRP so anyways is going to recover gst from the customer....am I Right?
You're right that a Composition dealer cannot charge GST on its bill of supply but there is no restriction in supplying goods at any price upto MRP for such dealers. In case of Composition Levy, since no GST is directly taken from customer, it does not mean that the tax component which would have otherwise been included in MRP is now to be excluded while selling products on composition levy. At whatever price composition dealer sells, on that the dealer will pay GST
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