Composite scheme

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This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

12 August 2017 A dealer registered under composite scheme purchases goods from another dealer who is also under composite scheme.

Request you to guide whether the purchaser (a composite dealer) will have to pay gst at the normal rate as if he has purchased from unregistered dealer.

CA. Vinodh Kothari

CA. Vinodh Kothari (Expert)
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12 August 2017 A dealer registered under Composition Scheme can make a purchase from another dealer who is registered in Composition Scheme. Since the purchase is from registered dealer the purchased need not pay GST.

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Querist : Anonymous

Querist : Anonymous (Querist)

12 August 2017 Thanks Vinod Sir.... Further request you to guide whether exemption limit of rs. 5000 per day to purchase goods/acquire service from unregistered firm is available to composite dealer also or not.

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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12 August 2017 Composite dealer is not unregistered dealer & no exemption of 5000/- allowed in respect of such purchase.

Querist : Anonymous

Querist : Anonymous (Querist)

12 August 2017 Thanks Rashmi.... Notification No.8/2017 specifies that if a registered dealer purchases goods or avails services from an unregistered dealer, he need not pay tax under reverse charge mechanism. As specified by you and Vinod Sir, a composite dealer is also a registered dealer, hence please guide if such exemption limit of Rs. 5000 will be available to composite dealer or not?

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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12 August 2017 No such exemption for composite dealers.

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

12 August 2017 Any notification or clarification available about the same.

RAJA P M

RAJA P M (Expert)
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12 August 2017 Hello Mr/Mrs. Anonymous... If you are composition dealer then you ll be purchasing from registered dealer no RCM applicable. But, You ll purchase from registered dealer then you ll be pay Tax under RCM.....

RAJA P M

RAJA P M (Expert)
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12 August 2017 Registered dealer means Regular Registered dealer and Composition Registered dealer.... You can purchase without RCM applicable both of the registered dealer.....

RAJA P M

RAJA P M (Expert)
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12 August 2017 Yes. The 5000 Rupees related rule also applicable to the Composition Dealers.... You can always use the rules to you.....

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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13 August 2017 Agreed with Raja PM. I misinterpreted the question.

Querist : Anonymous

Querist : Anonymous (Querist)

13 August 2017 Thanks Rashmi, Raja and Vinod

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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13 August 2017 Welcome.........