Composition levy - purchases for both inter and intra, Goods and Services Tax - GST

[RameshBabu Kari]

Dear experts,

Under Composition levy, person registered under this scheme, while on purchase of goods/services, does he need to pay the CGST and SGST or IGST ? if so, it will be cost to him, in such case,he consider to those taxes also as cost and price of the product will be fixed on cost + gst ? and also can he make purchase of inter state and making intra state sale ?

For making inter state purchase and intra state sale, can he eligible to take gst registration under Composition levy. ?

Posts / Replies

[KASTURI SETHI]

Yes. He will pay CGST and SGST or IGST. But no ITC. No restriction on purchase. Restriction is on inter State sale.For inter State sale registration is must whether under Composition or not. If anyone is engaged in inter State sale, that person is denied threshold exemption. Otherwise also a person who opts for composition scheme, he will pay GST from Re one.

[HimansuSekhar Sha]

He can make interstate purchase, but not interstate sale.