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Composition tax related

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Vijeesh Parapattil

74 Points Posted on 07 July 2020

Acomposition tax payer is paying tax out of his pocket. No input is claiming. Then why gst Department need the complete deatails of unregister /registered, Intra /inter sales transaction details. pls help

Replies (4)

Quick Summary

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.

manikanta

ca cpt

54 Points Posted on 07 July 2020

From this department comes to know about how much sales you made

KRISSHNAN KP

1708 Points Posted on 07 July 2020

Composition dealer is not allowed to inter state sales under section 10

Vijayprakash P

776 Points Posted on 07 July 2020

Once the Composite dealer crosses the threshold limit, the composition scheme shall lapse and it will then operate like a regular taxpayer.

Pankaj Rawat

GST Practitioner

29904 Points Posted on 08 July 2020

Dear Vijeesh.

1The Composition dealer cannot supply Interstate.
2. The composition dealer is required to file CMP 08 Qtly return & therein only total outward supply including Exempted supply & Inward supply attracts RCM need to provide.

So only outward supply & inward supply on which RCM is applicable need to be provided as consolidated figure.