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ITC for Composition dealer

jerrins joy (33 Points)

03 October 2020

whether Imput tax Credit can be available for Composition dealer

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prasad Nilugal ( GST Practitioner & Accounts ) (14221 Points)
Replied 03 October 2020

Composition Dealer can not claim Input Tax Credit .

jerrins joy (33 Points)
Replied 03 October 2020

What is registration limit for composition dealer

prasad Nilugal ( GST Practitioner & Accounts ) (14221 Points)
Replied 03 October 2020

Are you supplying Goods or providing services ?.

Shivam RC (Student) (23683 Points)
Replied 03 October 2020

No Sir. Composition Scheme Dealer are not eligible to claim ITC.

As per the Provision of Section 10(4) of the CGST Act 2017 read with Section 17(5) clause (e) of the CGST Act 2017 [ BLOCKED CREDITS ], Composition Scheme dealers are strictly not allowed to claim ITC on GST paid on their inputs since they cannot charge any GST on their outward supply from their customers.

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Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 04 October 2020

Composition dealer can not calim input tax credit. Composition dealer also can not charge GST on their sales bill i.e Bill of Supply.

Dealer required to just pay tax at concessional Composition rate to Government as Notified.

Currently, ‘Composition Scheme’ is available to those whose ‘aggregate turnover’ in the previous financial year did not exceed Rs. 150 lakhs. For Special Category States (Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura,) the limit is Rs 75 Lakh only. [See Notification No. 14/2019-Central Tax, dated 7-3-2019].

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