The Central Board of Indirect Taxes and Customs (CBIC) has clarified that a person registered as composition taxpayer cannot issue taxable invoice and can neither collect GST from his customers nor can claim ITC on his purchases.
The clarification was a response to a viral video where a restaurant was manipulating the customers despite being a composition taxpayer under the Goods and Services Tax (GST) law.
Responding to the video shared by Infosys former Director Mohandas Pai, the CBIC clarified that the composition taxpayer cannot issue taxable invoice.
“As per GST law, a person registered as composition taxpayer cannot issue taxable invoice and can neither collect GST from his customers nor can claim input tax credit on his purchases. The fact as to whether a person is a regular taxpayer or a composition taxpayer can be verified on the GST portal under “ Search Taxpayer” -> “Search by GSTIN/PAN” tab under the heading “Taxpayer Type”,” the CBIC clarified through its official twitter handle.
The Board has also provided the url for the same.
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