Composition Dealer - Purchase from Unregistered Dealers

[Arunagiri Guhaneswaran]

My client was exempt from VAT, being an arm of the Government.

However GST was applicable and this was decided after various clarifications and finally registered as a Composition Dealer on 15th December 2017 and filed quarterly returns for Dec 2017(15.12.2017 to 31.12.17, being the period of registration) and Jan,Feb,March 2018. However they have made purchase from composition dealers and unregistered dealers also.

April May June 2017 - Exempt

July 17 to 14th Dec 2017 - Not registered

GSTR 9C is not applicable since their turnover did not cross ₹ 2 crores.

The question is:

While filing GSTR 9A, whether we have to pay GST on purchase made from unregistered dealers?

What will be the taxation effect on Turnover from July 2017 to Dec 14th 2017? since they have not registered for that period.

AGN

AI Summary

GST Reverse Charge Applies to Composition Dealers for Purchases from Unregistered Dealers Before December 2017, Plus 18% Interest Due A client, exempt from VAT but subject to GST, registered as a Composition Dealer on December 15, 2017. They made purchases from both composition and unregistered dealers. The issue concerns whether GST must be paid on purchases from unregistered dealers when filing GSTR 9A, and the tax implications for the period between July 2017 and December 14, 2017, when they were unregistered. It was clarified that GST, along with 18% interest, must be paid under reverse charge for purchases from unregistered dealers. The postponement of reverse charge until September 2019 does not apply to composition dealers.