Input tax credit denial when purchasing from unregistered suppliers leads to loss of credit and reverse charge for composition taxpayers. Purchase of goods from unregistered suppliers leads to denial of Input Tax Credit to the recipient. If the recipient is registered under a composition ... Summary
Input tax credit denial when purchasing from unregistered suppliers leads to loss of credit and reverse charge for composition taxpayers.
Purchase of goods from unregistered suppliers leads to denial of Input Tax Credit to the recipient. If the recipient is registered under a composition scheme, the recipient must pay tax under the reverse charge mechanism on such purchases, creating both a loss of credit and a direct tax liability for composition taxpayers.
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