if regular taxpayers purchase from composition taxpayer taxable goods than regular taxpayer required to pay gst under RCM further supplies
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Quick Summary
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.
Composition dealer may purchase from Urp on RCM basic,then supply to registered dealer as bill of supply along with his purchase invoice. The registered deler may claim ITC by the shipment of composition dealer. so registered deler not issued an invoice against this inward supply.
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