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Issue ID: 114035
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COMPOSITE DEALER

Date 13 Aug 2018
Replies 5 Replies
Views 1029 Views
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. (AI Summary)

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.

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