What if composition scheme dealer charge gst on bills @18%

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2 Points Posted on 18 February 2020
i have a supplier with composition scheme and he did not mention on bill as composition dealer and he has charged gst @ 18% through all year

what to do

is he right as per law

should i take itc
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On 18 February 2020 at 00:04 Report
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Quick Summary
A supplier operating under the composition scheme has incorrectly charged 18% GST on bills without indicating their status. This is not permissible under law, as composition dealers cannot levy GST. You are not eligible to claim Input Tax Credit (ITC) on these charges. It is advised to issue a credit note, seek clarification from the supplier, and potentially recover the wrongly charged tax amount.

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GST Practitioner
55067 Points Posted on 18 February 2020
No .... the composit dealer cannot charge & collect GST.

Note : It's better to Issue the Credit Note for GST being charged from customer.
1 Reply
On 18 February 2020 at 06:07
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"Do the Right Thing...!!!"
128162 Points Posted on 18 February 2020
Ask the details and recover the tax amount from the supplier...
Also collect without Tax Bill...
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On 18 February 2020 at 06:31
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150 Points Posted on 20 February 2020
You are not eligible to take ITC
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On 20 February 2020 at 21:15

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