Tax invoice

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sumit

sumit (Querist)
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03 April 2013 Can Tax Invoice be issued to Lump sum dealer?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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17 July 2013 What is the Lumpsum dealer? and which state VAT

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
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26 July 2025 Yes, a **Tax Invoice** can be issued to a **Lump Sum Dealer** (also called a Composition Dealer under VAT laws).

However, here are some important points to note:

* **Composition Dealer** usually pays tax at a fixed rate on turnover and does **not** claim input tax credit.
* When you sell goods to a Lump Sum/Composition Dealer, you **can issue a tax invoice**, but it should mention that the buyer is a composition dealer and no input tax credit is available on this purchase.
* The invoice format and the tax rate applied should be as per the applicable VAT law and rules.
* In some states, sellers issuing invoices to composition dealers have to mention the composition scheme registration number and other details.

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**Summary:**

* Tax invoice **can be issued**.
* Mention clearly that buyer is a **composition dealer**.
* No input credit on such purchases.
* Tax charged at applicable VAT rates or composition scheme rates.

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