Purchase from composite dealer

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sivanagarajan (Querist)
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21 August 2017 we are in the Normal/Regular scheme in GST. Can we purchase materials from the composite dealer ? if yes, how should the input tax calculated ? or do we have to pay taxes for those purchases made ?

CA Shubhanshu Jain

CA Shubhanshu Jain (Expert)
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21 August 2017 Yes you can purchase from composite dealer, there is no problem in that, but note that neither composite dealer can take credit on his purchases nor dealer purchasing from composite dealer can claim input tax credit on his purchases.

CA Saloni

CA Saloni (Expert)
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21 August 2017 Yes Mr Shubanshu is correct. You are not paying tax to composite dealer, so you cannot claim ITC.
And moreover RCM is not applicable because composite dealers are registered dealers.

sivanagarajan

sivanagarajan (Querist)
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21 August 2017 Thanks for the reply. Should i treat the purchases made from composite dealer as zero rated purchase ? or how should i account in GST ?

CA Saloni

CA Saloni (Expert)
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21 August 2017 There is a separate column for purchases from composite dealers.

sivanagarajan

sivanagarajan (Querist)
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21 August 2017 thanks for your reply saloni

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