Composition scheme doubt

235 views 1 replies

Hi,

I have doubt regarding Composition Scheme. 

Scenario 1 - I am a Trader of Furniture registered under Composition Scheme. I buy products from manufacturers who is also REGISTERED IN COMPOSITION SCHEME. Since the manufacturers is not eligible to collect GST from me(though he is paying the eligible 2% of turnover). Am I supposed to pay any additional GST Tax to govt in this case? If yes, how do I do it?

Scenario 2- I am a Trader of Furniture registered under Composition Scheme. I buy products from manufacturers is NOT REGISTERED. Since the manufacturers is not eligible to collect GST from me. Am I supposed to pay any additional GST Tax to govt in this case? If yes, how do I do it?

Thanks in advance for the response!

Replies (1)

Case -I

You are regd as composite dealer and purchasing from a regd dealer. You only pay normal GST quarterly, no extra liability on you.

Case-II

You are regd as composite dealer and purchasing from a unregd dealer. You have to pay GST under RCM.

 

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