9911796707
| TMI Short Notes | ||
Can a registered person, who purchases goods from a composition manufacturer / trader (dealer / supplier) take input tax credit under GST? |
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Section 10 - Composition levy. THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 No. A taxable person opting to pay tax under the composition scheme is out of the credit chain. He cannot issue a Tax Invoice. He cannot collect tax from the buyers of the goods. Therefore, any registered person who is purchasing goods from a composition manufacturer / trader is not eligible to the Input Tax Credit (ITC) of tax paid on such goods.
Dated: 24-7-2017
Suggestions / Comments
A taxable person opting to pay tax under the composition scheme is to pay GST on his own. He cannot collect any tax from the service recipient. Further in his bill he is to indicate 'COMPOSITION LEVY - NO CREDIT IS AVAILABLE'. As such any registered person purchasing goods from a composition manufacturer/trader is not going to pay tax to the the person opting to pay tax. As such the question of taking credit does not arise.
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