Inward supply from composition dealer under GST

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The assessee has been registered as regular dealer under GST.

The assessee has made a purchase from the dealer, who opted composition scheme under GST. Hence, the supplier not charged GST on supply but he paid the GST @ 2.5% on supply amount.

The question is, whether the assessee is liable to make payment of tax under RCM u/s 9(4) of CGST Act ?

Because, the Section 2(94) states that, the registered person means, the person registered u/s 25.

The composition dealer registered u/s 10, so whether, the composition dealer will covered under "Regitered Person" ?

Replies (5)

yes composition dealer will be termed as registered person. As composition dealer mendatorily deduct GST so no need for RCM

But you cannot avail ITC on that as composition dealer cannot issue Tax Challan

but mam..
the definition of registered person does not include the dealer registered u/s 10..
then also it will be considered as registered person ??

The language in section 10 is that if a Registered person have turnover below 50 lakhs (now 75 lakhs ) than that person can opt for composition scheme

Thank you mam..👍


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