TaxTMI 
TaxTMI 
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 ?
how to deal in Trading when purchase form Composite scheme dealer
28 Aug 2017 
2 Replies 
1457 Views Asked by
Input Tax Credit unavailability: Purchases from composition dealers require GST charging on onward taxable supplies.
Purchases from composition scheme dealers do not carry transferable Input Tax Credit; buyers cannot claim ITC on such acquisitions. The nominal levy paid by a composition dealer is treated as discharged by that dealer and not as tax-paid input for the purchaser. If the purchaser makes onward supplies for consideration that fall within the taxable ambit, those onward supplies are subject to GST and must be charged and discharged by the seller in the normal course. (AI Summary)
Purchases from composition scheme dealers do not carry transferable Input Tax Credit; buyers cannot claim ITC on such acquisitions. The nominal levy paid by a composition dealer is treated as discharged by that dealer and not as tax-paid input for the purchaser. If the purchaser makes onward supplies for consideration that fall within the taxable ambit, those onward supplies are subject to GST and must be charged and discharged by the seller in the normal course. (AI Summary)