Composition levy - purchases for both inter and intra

[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. ?

[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.

[Himansu Sekhar]

He can make interstate purchase, but not interstate sale.

AI Summary

Composition levy: taxpayers pay CGST/SGST or IGST but cannot claim input tax credit; inter state sales require registration. Under the composition levy, a registrant must pay CGST and SGST on intra state supplies and IGST on inter state purchases, but cannot claim input tax credit; inter state purchases are permitted, yet inter state sales are restricted and require registration which disqualifies the taxpayer from the composition threshold exemption.