Billing under composition and itc

ITC / Input 261 views 3 replies

wadhwanisam2@gmail.com

111 Points Joined July 2017

My client has a wholesale buisness of Namkeen.
Suppose he purchase a bag of namkeen @ Rs. 1000 add gst @ 12% it comes to 1120.
Then what amount he would bill for if its profit margin is Rs. 20 per bag.

1.if it is under composition scheme.

2.Also specify when a person purchase from wholeseller under composition scheme then but a wholeseller i.e., 120 paid to their manufacturer who is in normal provision pls specify can he avail a credit of gst which not a retailor

Replies (3)

CA Sathish Reddy

Articles

352 Points Joined July 2017

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

RAJA P M

"Do the Right Thing...!!!"

128116 Points Joined January 2015

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....?

swati

56 Points Joined February 2010

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.