Composition dealer shall not issue tax invoice but Issue Bill of Supply. Composition dealer shall not collect any tax from the recipient on supplies made by him. [Section (10)(4)]. Composition dealer shall not be entitled to any credit of input tax. [Section (10)(4)]
In the principal Act, in Section 10, after sub-section (4), the following subsection shall be inserted, namely:- “(5) Where the goods which have been purchased by a dealer are sold at a price lower than the price at which it was purchased by the dealer, the tax credit on such purchases shall be reduced proportionately in the tax period during which the goods are sold.
The Empowered Committee of State Finance Ministers, finally issued a long awaited First Discussion Paper on Goods and Services Tax in India. Though it was expected that this Discussion paper will put an end to much awaited queries on implementing GST in India, however after analyzing the Paper, it appears as if this has been drafted in a hush-hush manner to meet the revised deadline of implementing GST in India.
