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Composition Scheme

Adaikkalaven Muthu (113 Points)

08 October 2018

Please explain with an example, whether a composition delear can collect GST amount from consumers

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6 Replies

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 08 October 2018

Composition Dealer Don't collect GST from Customers.

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CA Rakesh Joshi (Chartered Accountant ) (1272 Points)
Replied 08 October 2018

Composition dealer cannot collect GST since he is opting under compostion scheme to pay GST at a lesser rate than that of a normal supplier.

Vinod Babu (24191 Points)
Replied 08 October 2018

Composition dealer should not collect tax on outward supplies. They have to pay the gst amount from their own pocket.
Tax invoice should not issued instead issue invoice mentioning "Bill of supply"

In composition levy-
* For trader and manufacturer, it is 1%(cgst 0.5%+sgst 0.5%.

* For Restaurant, it is 5%(cgst 2.5%+sgst 2.5%)
Gst to be paid on total taxable supplies.
From 1st jan18,no gst on exempted supplies.

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 08 October 2018

In simple words the composit dealer has ro deposit GST from his pocket

Rohan Bagra (406 Points)
Replied 09 October 2018

composite dealer cannot collect GST from customers and he is not allowed to take ITC of goods purchased by him.

composite dealer has to pay GST from his own pocket.

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Ashish Kumar Bansal (Accountant) (43 Points)
Replied 09 October 2018

Composition Dealer can't collect GST from Buyers and it is liable to mention on top of Invoice Clearly "Composition taxable person, not eligible to collect tax on supplies”

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