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Composition dealer can sold to Composition Dealer ??

HISSARIA - (8 Points)

03 October 2018

Can a Composition Dealer sold Goods to Composition Dealer and what is the position of purchaser for tax liability

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4 Replies

RAJA P M ("Do the Right Thing...!!!") (128101 Points)
Replied 03 October 2018

Yes.... Why not...?!

Composition Dealer can sell his goods to anybody in Intra State...

If Purchaser is Composition dealer then No need to worry about Tax Liability for the Purchase...

If Purchaser is Regular dealer then He can't avail any Tax (ITC) in the purchased goods from composition dealer.

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Anirudh (Student) (299 Points)
Replied 03 October 2018

No question of claiming ITC by purchaser as a composition dealer can not collect GST from his customers.

Pankaj Rawat (GST Practitioner) (55057 Points)
Replied 03 October 2018

Both are registered dealer the only point is composition dealer cannot collect tax & annot claim ITC. so one composit dealer can purchase from other composit dealer

H.R. Sreepada Bhagi (Practicing Cost Accountant) (50 Points)
Replied 04 October 2018

Yes. A Conposition Dealer can sell goods to another Composition Dealer. Applicable tax needs to be discharged by the supplier. As Tx cannot be collected by the composition dealer, the question of availing ITC by the recipient composition dealer doesn't arise.