PURCHASE FROM COMPOSITION DEALER THAN PAY GST UNDER RCM

This discussion clarifies the Goods and Services Tax (GST) implications when a regular taxpayer buys taxable goods from a composition scheme dealer. In such cases, the regular taxpayer is liable to pay GST under the Reverse Charge Mechanism (RCM). While a composition dealer cannot issue a tax invoice, they can provide a bill of supply along with their purchase invoice. The regular taxpayer can then claim Input Tax Credit (ITC) for the GST paid under RCM.