You will have to pay tax if you supply goods bought from composition dealer. As composition can not issue Tax Invoice you can not have benefit of ITC. So those who want to take ITC credit must avoid purchasing from composition dealer
I have an issue if a normal taxpayer is purchasing goods from composition scheme dealer then what is need of ITC because composition scheme dealer is not charging tax in our bill?
But composition dealer is charging 1%. I will add to your cost price. Also normal dealer will have to pay tax when he makes sale. So in this case GST has been paid twice. Once when composition dealer purchased and other when normal dealer sells after purchasing from composition dealer.
I replied you assuming that composition dealer sells first to normal dealer or regular dealer. If you mean normal taxpayer as customer than composition will charge only 1%