Composition gst tax input

Being composition regn, you will not be able to claim ITC. Customer should be given information of the same that you are composition regn and GST will not be charged on Invoice.

If your customer is demanding input tax credit and holds valid GST regn (Regular) then you have to raise Invoice from Regular GST registration no. else you might have to cancel this transaction and reverse the sale.

Convice your client that you are composition dealer & cannot collect & charge GST on bill .

you cannot collect GST from another registered dealers as you are a composition taxpayer.

This is a major setback under Composition scheme. You cannot avail ITC. So the GST paid towards your purchase becomes your cost. Similarly you cannot collect the GST from the buyer. So normally the buyer will not be eligible for ITC, so his cost becomes high.