I will purchase FROM interstate , but iam composition dealer tax PAYABLE @ 1% or applicable interstate purchase rate of tax please explain
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Quick Summary
This discussion clarifies the GST implications for composition dealers, particularly regarding interstate purchases. While composition dealers pay a special 1% tax on their sales, they must pay the standard applicable GST rate on goods purchased from interstate vendors. This purchase tax is treated as a cost, as input tax credit is not available for composition dealers on such purchases. Furthermore, the GST Act generally prohibits composition dealers from engaging in interstate sales.
On purchases, tax at the rate as applicable to the goods would be payable to the vendor. Special rate for composition dealers are only in respect of sales.
Composite dealer cannot sell interstate as per gst act
however if u are asking for purchase then vendor will charge tax normally as per the gst rate applicable on the product which will be booked as cost and no input tax credit will be available