TaxTMI 
TaxTMI 
A Composition dealer sells goods at MRP which is inclusive of taxes. Does it mean he is collecting GST which is prohibited under GST Act.
GST - Composition
27 Jul 2018 
6 Replies 
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Composition scheme restricts dealers from separately collecting GST; they must pay tax on turnover without availing input tax credit.
Composition dealers cannot claim input tax credit and must pay GST on their turnover rather than collect tax separately; MRP is an inclusive retail price and is not a statutory mechanism to permit separate GST collection under the composition regime, though market practice may embed tax within selling prices. (AI Summary)
Composition dealers cannot claim input tax credit and must pay GST on their turnover rather than collect tax separately; MRP is an inclusive retail price and is not a statutory mechanism to permit separate GST collection under the composition regime, though market practice may embed tax within selling prices. (AI Summary)