Dear Members,
A Manufacturer manufactures some Items and then sold to a dealer, who opt for Composition Scheme.
My question is that by selling the items to Unregistered dealer (i.e. Composition Scheme dealer), can the Manufacturer claim the credit of tax paid on raw materials to produce finished product of these items stated above.
Thanks in advance.
YES,when manufacturer(assuming regular person)will be charging and paying GST @ applicable rate on his outward supply then he cannot be debarred to avail ITC on the same.Only when you make purchase from a composition dealer then you won't be getting any credit of ITC paid to him.
CAclubindia
