WHETHER PROVISION OF SEC 18(4) APPLY TO NON COMPOSITION DEALER UNDER VAT I.E EARLIER LAW AND OPTING TO COMPOSITION U/SEC 10 UNDER GST OR REGISTERED UNDER GST AND LATER STAGE SHIFTS TO COMPOSITION SCHEME ?
PROVISION OF SEC 18(4) APPLY TO NON COMPOSITION DEALER
YUWRAJ KOTHARI
Section 18(4) GST: Impact on Non-Composition Dealers Opting for Composition Scheme and Repayment of Input Tax Credit A query was raised about the applicability of Section 18(4) of the GST law to non-composition dealers under the earlier VAT system who opt for the composition scheme under Section 10 of GST or those registered under GST who later shift to the composition scheme. The response clarified that Section 18(4) applies to individuals who have availed input tax credit and then opt for the composition levy. If their goods or services become exempt under the GST regime, they must repay an amount equal to the credit taken. (AI Summary)