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Composit rule

Anshuman Basu (account -GST) (1546 Points)

18 February 2020

I have following question regarding Composition dealer:

1/ A Composition dealer (Service Provider) having turnover of less than 50 lakhs, can he opt Composition registration generate Tax invoice? What is the Tax rate? collect this 6% from his clients or should he pay from his own pocket?

2/ Can inter state billing is possible for him?

3/ whether he can provide any kind of service?

4/ Is RCM is applicable on Composition dealer if he purchase from UR Dealer?

4/ Is RCM is applicable on Composition dealer if he received services from GTA service provider both (Registered or UR party)?

5/ Can he take ITC?

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2 Replies

RAJA P M ("Do the Right Thing...!!!") (127133 Points)
Replied 18 February 2020

1. https://cleartax.in/s/gst-composition-scheme-service-providers

2. No...

3. pls be read 1

4. No...

5. Yes...

6. No...

Pankaj Rawat (GST Practitioner) (55032 Points)
Replied 19 February 2020

1. As per sub clause (2A) of Section 10 of CGST Act , yes can opt for said scheme. , He can issue bill of supply only . Cannot collect GST from customer.

2. No cannot supply Interstate

3. No he cannot supply goods or services which is not leviable to Tax under GST., Not engaged in supply of Aerated Water, cannot supply through E-commerce, cannot supply Ice cream, pan masala, all goods, i.e. Tobacco and manufactured tobacco substitutes.

4. No

5 Yes but cannot claim ITC for the same

5 No