Question

what are the rules of composition dealers​

Answer 1

Answer:

• Composition dealers cannot collect tax from the customers, hence they can not issue tax invoice. They have to give ‘bill of supply’.

• Composition dealers should file the return quarterly (i.e. every 3 months.)

• Composition dealers cannot sell goods outside the state (Inter-state sale is not allowed) But they can purchase goods from other states.

• Composition dealers cannot avail the benefits of ITC.

• On the signboard of the shop, he should mention ‘Composition taxable person’.

• On the Bill of supply it is mandatory to print ‘Composition taxable person not eligible to collect tax on supplies’ in bold letters.

Answer 2

Step-by-step explanation:

no input tax credit can be claimed by a dealer opting for composition scheme