Composition scheme

No. composition supplier only issue bill of supply then bill of supply is not tax invoice there fore composition dealer not supply taxable goods

he is not eligible to do taxable supplies as he is required to issue "bill of supply" instead of "tax invoice" . 

Important Note : even COMPOSITION DEALER IS NOT ELIGIBLE TO DO INTER STATE SUPPLIES 

Yes.....

Why not ???

A Composition Scheme dealer can do both Taxable as well as Exempt Supply. There is no such restrictions and conditions regarding the same in the CGST Act 2017 or the corresponding CGST Rules 2017. The restriction is only with the NON TAXABLE SUPPLY.

However, they are not allowed to collect Output Tax from their customers. That is why they have to issue a Bill of Supply instead of a Tax Invoice as per the Provision of Section 31(3) clause (c).

Further, they are not eligible to claim ITC on their inputs, as the same is restricted under Section 10(4) of the CGST Act 2017 and it is also specifically BLOCKED under Section 17(5) clause (e) of the CGST Act 2017.