Advisory for Bill of Supply issued by composition taxable person - GST - TRADE NOTICE NO. 04/2019

MINISTRY OF FINANCE CENTRAL BOARD OF INDIRECT TAXES CUSTOMS CENTRAL GST COMMISSIONERATE- DAMAN 2 ND FLOOR, HANI S LANDMARK, VAPI CHALA ROAD, CHALA, VAPI F. No. V/ Misc-129/ DMN/T/17-18 DATED 20.06.2019 TRADE NOTICE NO. 04/2019 Sub: Advisory for Bill of Supply issued by composition taxable person - reg. Attention is invited to the Trade Associations, Chambers of Commerce, Members Of Regional Advisory Committee and all the stake holders, informing that the GST is being charged by dealers registered under Composition Scheme and consumers who are not aware of the fact are being duped. In spite of specific provisions in the law, some composition taxable persons are not following the same and may be charging GST from consumers, which is not legal. In order to make such taxpayers as well as the consumers aware about these legal provisions, the following Advisory is' issued as under: 2. Advisory_ for Bill of Supply by composition taxable person: Rule 5 of CGST Rules, 2017 provides conditions and restrictions for a taxable person exercise the option to pay tax under Section 10 of CGST Act, 2017 i.e. composition levy, Sub-rule and 5(g) of said rule provide that: (f) he shall mention the words composition taxable person, not eligible to collect tax on the top of the bill of supply issued by him; and (g) he shall mention words composition taxable person on every notice or signboard displayed at a prominent place at his principal place of business and at every additional place or places of business. 3. Therefore, it is advised that the composition taxable person should print COMPOSITION TAXABLE PERSON, NOT ELIGIBLE TO COLLECT TAX ON SUPPLIES (in bold and capital letters) on each and every bill of supply they issue and they should also mention COMPOSITION TAXABLE PERSON (in bold and capital letters) on every notice or signboard displayed at a prominent place at their principal place of business and at every additional places of business. 4. If composition taxable person fails to comply with the conditions as mentioned in rule 5 of CGST Rules, the proper officer may initiate appropriate action against such persons under GST Law. It may be noted that contravention of any provision of CGST Act, 2017 or rules made thereunder attract penalty, fine or prosecution as the case may be. 5. All the Trade Associations, Chambers of Commerce, Members of Regional Advisory Committee and all the stake holders are requested to publicize the contents of this Trade Notice among their Members/ Constituents to make the composition taxpayers and consumers aware about the correct legal provision. Difficulty, if any faced in this regard may be brought to the notice of this office. (Reshma Lakhani) Principal Commissioner, Central CST Central Excise, Daman