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Composition scheme

Venkatesan Ramanujam (123 Points)

08 September 2020

can the dealer under composition scheme collect tax of 1% by issuing tax invoice from dealers?

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3 Replies

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 08 September 2020

No, Composition dealer can not issue tax invoice and also can't charge GST from customer.
Composition dealer required to issue "Bill of Supply" and have to Pay tax out off his pocket only...

Vijayprakash P (1313 Points)
Replied 08 September 2020

Composition dealer must mention the words ' composition taxable person, not eligible to collect tax on supplies' at the top of "Bill of supply" issued by him.