whether sec 9(3) is attracted to composition dealer as that sec amended as applicable to notified goods and for notified persons? whether purchases from unregistered supplier by composition dealer attracts tax?
Replies (2)
Quick Summary
This discussion clarifies whether composition dealers are liable for GST on purchases from unregistered suppliers. It confirms that Section 9(3) of the GST Act applies, meaning the composition dealer must pay tax under the Reverse Charge Mechanism (RCM) even if the supplier is unregistered. Section 10, concerning the composition scheme, does not override these provisions.
Yes, section 9(3) attract to comp. scheme but Section 10 doesn't overrule section 9(3) & 9(4). yes; if supplier is unregistered then also RCM apply in composition scheme and tax is to be paid by recipient.