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Composition gst tax input

Sridhar (Student) (29 Points)

31 August 2019

Dear sirs, I am facing a Problemin GST compositon biling, I purchased a laptop for 53000/-Nett inclusing 18% GST and Sold for my Client for 55000/- with GST composition billing without showing any GST.. Now client wants input 18% because the laptop worth shows 43000/- in everystore without gst..

How can i overcome this and how can my client claim?

Kindly help

Sridhar

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4 Replies

Uttam (employee) (814 Points)
Replied 31 August 2019

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.

1 Like

Pankaj Rawat (GST Practitioner) (55032 Points)
Replied 01 September 2019

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

Akshay Jain (Tax Consultant) (1024 Points)
Replied 02 September 2019

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

Ravi kumar (178 Points)
Replied 16 September 2019

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.