1.a dealer composite scheme registered in gst act
2.a dealer regular scheme registered in gst act.
question:
dealer which type of accounting records maintained between regular vs composite registered in gst act
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Accounting records maintained difference regular vs composite
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| The key differences in accounting records between Regular and Composition GST dealers: 1. GST Records — Regular Dealer: - Must maintain: Tax invoices (with HSN, GST rate, CGST/SGST/IGST breakup), purchase register, sales register, stock register, ITC ledger (electronic credit ledger on GST portal), output tax ledger - Files: GSTR-1 (monthly/quarterly), GSTR-3B (monthly/quarterly), GSTR-9 (annual), GSTR-9C (if turnover > Rs. 5 crore) - Can collect GST from customers and claim ITC on purchases - Must issue Tax Invoice for all taxable supplies 2. GST Records — Composition Dealer: - Issues only Bill of Supply (NOT Tax Invoice) — cannot collect GST from customer - Cannot claim ITC on any purchases — this is the biggest difference - Pays GST at a flat rate on turnover (1% for traders, 5% for restaurants, 6% for service providers) - Files: CMP-08 (quarterly self-assessment) and GSTR-4 (annual return) - No HSN-wise breakup required in invoices (simplified billing) - Must display 'Composition Taxable Person, Not Eligible to Collect Tax on Supplies' on every bill 3. Books of Accounts: - Regular dealer: Detailed purchase/sales ledgers with GST component separation, ITC availed and reversed, party-wise outstanding - Composition dealer: Simpler books — just sales turnover tracking and flat tax payment. No ITC ledger since ITC is not available. GST paid is treated as a business expense 4. Tally Entry Difference: In Tally for composition dealer, GST is not bifurcated in sales — the composition tax is booked as a direct expense. For regular dealer, CGST/SGST/IGST are tracked as separate ledgers against each invoice. |
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