Billing under composition and itc

Under Composition scheme

Composite dealer cannot charge GST

So Bill amount is 1000+20=1020

Composite dealer shall pay the Tax whatever applicable to them

And

Composite dealer cannot take ITC

Originally posted by : CA Sathish Reddy
	Under Composition scheme Composite dealer cannot charge GST So Bill amount is 1000+20=1020 Composite dealer shall pay the Tax whatever applicable to them And Composite dealer cannot take ITC

In my view You are wrong reply....!

How is it...? He purchased Rs. 1120 and he ll be sell his goods Rs. 1020... Then where is he get that Rs. 100....

He following your said way then He can closed the shop permamnetly....

Am I right or wrong....?

As composition scheme person can not avail ITC paid on purchases. So amount paid Rs. 1000+120 = 1120 will be his actual cost. For margin of Rs. 20 he has to issue cash memo or normal invoice (not tax invoice) of Rs. 1140 and on that he has to pay GST under compisition scheme.

Question 2nd is not clear to me please elaborate a little.