Vikas Sinha asked 5 years ago
Tax in regular scheme when purchased from composition dealer
when a regular dealer (A) purchases from composition dealer (X) then he can further charge GST on that item or not? if yes then it is double taxation or not. because further A supplies again to composition dealer (Y) and he again supplies to the regular dealer (B) then the GST will be doubled than actual GST rate.but when that regular dealer again applies GST on that item the price of that item will be extremely high because the tax paid by composition dealer while purchasing that product is adjusted in his bill of supply
Answer the question1 Answers
Sachin Agrahari answered 5 years ago
Dear Vikas ji,
it is fact and earlier known that composition scheme is going to break the ITC channel and taxed at double times.
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Yes..this is fact. Composition Scheme to be opted in case where sale made to final customer say for retailers/restaurants and where taxpayers do not want to go for more organized way.