Gst input query composition dealer

This discussion clarifies the implications of operating under the GST composition scheme when purchasing from unregistered dealers. While registered dealers buying from you won't face issues, they won't be eligible for input tax credit. You, as the composition dealer, will issue a 'Bill of Supply' and must pay GST from your own pocket on sales, as you cannot charge GST to your buyers. If you purchase goods from an unregistered dealer, you will need to pay Reverse Charge Mechanism (RCM) tax.