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Iam composition dealer

B GKAMATAR (TAX CONSULTANT) (145 Points)

18 May 2021

I will purchase FROM interstate , but iam composition dealer tax PAYABLE @ 1% or applicable interstate purchase rate of tax please explain

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4 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 18 May 2021

Composition dealers are applicable at the rate of 1% tax

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CMA Poornima Madhava (CMA) (13112 Points)
Replied 18 May 2021

On purchases, tax at the rate as applicable to the goods would be payable to the vendor. Special rate for composition dealers are only in respect of sales.

RENU SHARMA (1388 Points)
Replied 18 May 2021

Composition dealer tax rate on sale is 1% and regarding purchase tax rate as applicable to goods would be payable to the vender

Mohit Jagnani (Professional - CA firm) (524 Points)
Replied 19 May 2021

Composite dealer cannot sell interstate as per gst act

however if u are asking for purchase then vendor will charge tax normally as per the gst rate applicable on the product which will be booked as cost and no input tax credit will be available

Thanks,
mohitagrawal076 @ gmail.com