TMI BlogComposition Dealer - Purchase from Unregistered DealersX X X X Extracts X X X X X X X X Extracts X X X X ..... 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 unre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gistered 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 n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot registered for that period. AGN - Reply By KASTURI SETHI - The Reply = Regarding the purchase from unregistered dealer you are to pay applicable GST along with interest @ 18% under RCM. From July, 17 to 14.12.17 you are to pay GST along with interest as regular GST registered person. Regarding the purchase from composition dealer, both will neither charge GST from customers nor will tak ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e ITC. The Composition dealer cannot supply inter-State. Being a Govt. concern, no mala fide intent or suppression is involved. So neither higher rate of interest nor penalty is imposable.Penalty is also not imposable on the ground that there was a interpretational dispute. There are case laws in this aspect in favour of Govt. Anyhow, in order to avoid higher rate of interest and penalty and li ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tigation. Pl. deposit Govt. dues with simple interest @ 18% before issuance of notice from the department. The Department treats both concerns Govt. and Private at par as tax comes from the pocket of common man. - Reply By Arunagiri Guhaneswaran - The Reply = Thank You Sir for your detailed reply There is a confusion that Reverse Charge is postponed till Sep 2019, hence not payable for pu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rchase from unregistered dealers Kindly clarify Thanks Again AGN - Reply By KASTURI SETHI - The Reply = Postponement up to 30.9.19 is not applicable to you as composition dealer. Here is a FAQ dated 16.8.17 available on CBEC site.It is requirement of law as well as Govt.'s intent that Composition dealer must buy from registered dealer so that tax must be paid by that registered person ( c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... omposition dealer) and ITC be not be taken. Benefits of both worlds cannot be allowed to composition dealer. Q18. A person opting to pay tax under the composition scheme receiv es inputs/input services from an unregistered person. Will the composition dealer have to pay GST under reverse charge? If yes, in what manner? Ans. Yes. Tax will have to be paid on supplies received from unregis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tered persons by the composition dealer under reverse charge at normal rates and not composition rates. The tax can be paid by the 18th day of the month succeeding the quarter in which such supplies were received. The information relating to such supplies should be shown by the composition dealer in Table 4 of Form GSTR 4 . In respect of other notified supplies in which GST is chargeable on rever ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se charge basis, the composition dealer will have to pay tax at normal rates - Composition Dealer - Purchase from Unregistered Dealers - Query Started By: - Arunagiri Guhaneswaran Dated:- 19-6-2019 Goods and Services Tax - GST - Got 3 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
