COMPOSITE DEALER

[SURYAKANT MITHBAVKAR]

Under Composite Dealer The rate applicable to the supplies (i.e. Manufacturer supply & Traders Supply) is the rate at which GST has to be paid.

[Himansu Sekhar]

What is the query?

[SHIVKUMAR SHARMA]

You have to Pay GST 1%(CGST 0.5% & SGST 0.5%) to the govt. .But You can not charged the same in the Invoice from the Customer.

[DR.MARIAPPAN GOVINDARAJAN]

What Shri Sivakumar told is correct.

Also you cann't avail ITC.

[Ganeshan Kalyani]

Composition dealer has to pay tax on the turnover. He cannot charge tax from the customer.

AI Summary

Composition dealer tax obligation: pay tax on turnover, cannot charge tax to customers or claim input tax credit.
Composition dealers must pay tax on their aggregate turnover at the prescribed composition levy, cannot charge tax separately to customers on invoices, and are not eligible to claim input tax credit; the composition levy is paid to the government and borne by the dealer rather than collected from recipients.