how to deal in Trading when purchase form Composite scheme dealer

[RameshBabu Kari]

Dear Experts,

how to deal in Trading when purchase form Composite scheme dealer ? Shall we collect tax on sale of particular products which were bought from Composite scheme dealer ?

AI Summary

Understanding GST: No Input Tax Credit for Composite Scheme Purchases; Dealer's Charge Isn't GST but Separate. A participant in a discussion forum inquired about trading practices when purchasing from a dealer under the Composite Scheme in the context of Goods and Services Tax (GST). One expert advised that there is no scope for Input Tax Credit (ITC) and that all supplies with consideration should be chargeable to GST. Another expert clarified that goods purchased from a Composition dealer are exempt from GST, and the 1% or 2% paid by the dealer is not GST but a separate amount borne by the dealer.