Whether dealer in composition scheme is liable for reverse charge on purchases from unregistered dealer?

Whether a dealer in composition scheme is liable for reverse charge on purchases from unregistered dealers or transport and legal charges.

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4 Answer(s)

Hi, no he will paid fix % gst liability only.

Answered on June 18, 2017.
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Hi, pls ignore my previous answer. Please note below— Restrictions and limitations under the composition scheme As part of India’s composition scheme, taxpayers must: Not collect GST. GST is to be borne by the out-of-sale proceedsNot claim input tax credit of GST on goods purchased or services availedIssue a bill of supply instead of a tax invoice that declares “composition taxable person, not eligible to collect tax on supplies”Display “composition taxable person” in a prominent place at his principal place of business and at every additional place of businessLet purchasers of goods know they are not entitled to a credit of GST paid by the composition taxable personPay GST on a reverse charge basis on the goods purchased and services availed from an unregistered person

Answered on June 18, 2017.
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Yes he will liable

Answered on June 18, 2017.
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Yes section 9(4) does not exempt them, so my view is to pay tax as they are in composition they can not take credit of this tax as well

Answered on June 18, 2017.
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Your Answer

Gen GST