composition levy

purchase goods from composite supplier does not effect to collect tax form customer if they are regular dealer.

suppose a person called R is regular dealer purchase goods from S (a composite dealer) and sell it to C is customer. now R is purchasing from composition and selling it . the all tax collected will need to deposit provided there is not another input. since composite dealer can not charge GST .

but sir suppose I m the customer(not a dealer,simply a final consumer) and I purchased goods from supplier paying under section 10,
so how govt, will get tax from me,as I purchased goods from supplier paying tax under section 10 ,so he can't charge tax from me,and I m not registered person neither I will pay tax under reverse charge.

as I am understanding you that you wish to know the mechanism how it's working . is govt going in loss if your query is the same then govt is not in loss. since in the first stage or anywhere in the chain any one paid GST by regular then that will direclty going to govt that credit is not going to any one. in additional all composite dealer will pay @ 1% of the turnover. finally as we consumer is purchasing not paying tax directly but indirectly we are paying that is included in cost of product.

In composition scheme dealer will not charge tax seperate he will fix the price inclusive of tax

thanx to both of you(sir) 😊