Composition tax related

Composition tax payers pay GST from their own funds without claiming input tax credit. Despite this, the GST department requires detailed sales transaction information. This is because they need to track your total sales volume. Composition dealers are restricted from making interstate sales and must file a quarterly return (CMP-08) detailing total outward supplies and any inward supplies subject to reverse charge. If a composition dealer exceeds the threshold limit, they automatically transition to the regular taxpayer scheme.