a registered person (normal reg) under gst, purchases goods from a registered person under composition scheme. do we have to pay purchase tax under reverse charge
anshul aggarwal
(Consultant)
(1074 Points)
Replied 23 September 2017
RAMESH KUMAR SINGLA
(PROFESSIONAL)
(1777 Points)
Replied 23 September 2017
what i have understood is that your supplier is registered under composition scheme laid down under section 10 of CGST Act. if so, then the suppier cannot collect any tax from you and he also cannot issue any tax invoice to you. Therefore, you cannot take any credit also. The supplier will pay GST at the prescribed rate without issuing taxable invoice to you. The answer lies in section 10(4) of CGT Act.
FURTHR, table 7 of GSTR 2 provides space for making entries in respect of supplies received from suppliers registered under composition scheme.
anshul aggarwal
(Consultant)
(1074 Points)
Replied 23 September 2017
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