{"id":152,"date":"2020-01-31T01:38:58","date_gmt":"2020-01-30T20:08:58","guid":{"rendered":""},"modified":"2026-09-03T16:47:23","modified_gmt":"2026-09-03T16:47:23","slug":"gst-compliance-and-challenges-for-composite-dealers","status":"publish","type":"post","link":"https:\/\/www.legalsalaah.com\/blog\/gst-compliance-and-challenges-for-composite-dealers\/","title":{"rendered":"GST compliance and Challenges for Composite Dealers"},"content":{"rendered":"<p><font face=\"Georgia\" color=\"#330033\" size=\"4\">A business that specializes in trading, manufacturing or owning a restaurant having a turnover less than 1.5 crore (75 lakh in case of North-Eastern States) is now eligible to get registered under the composition scheme. These kinds of businesses are required to file GST returns quarterly. The composite dealers are facing some challenges even after the new GST laws implemented for their ease. Let us learn about the challenges.<\/font><\/p>\n<div><font face=\"Georgia\" color=\"#330033\" size=\"4\"><br \/><\/font><\/div>\n<div>\n<div><font face=\"Georgia\" color=\"#330033\" size=\"4\"><b>The challenge<\/b><\/font><\/div>\n<div><font face=\"Georgia\" color=\"#330033\" size=\"4\"><br \/><\/font><\/div>\n<div><font face=\"Georgia\" color=\"#330033\" size=\"4\">Imagine you have prepared data for the month of June to August and a new rule has been implemented to make your the work more easy and now you have to again categorize each of them separately. Isn&#8217;t that a challenging job? You might end up paying more tax.<\/font><\/div>\n<\/div>\n<div><font face=\"Georgia\" color=\"#330033\" size=\"4\"><br \/><\/font><\/div>\n<div>\n<div><font face=\"Georgia\" color=\"#330033\" size=\"4\"><b>Challenges<\/b><\/font><\/div>\n<div><font face=\"Georgia\" color=\"#330033\" size=\"4\"><br \/><\/font><\/div>\n<div><font face=\"Georgia\" color=\"#330033\" size=\"4\"><b>Are you calculating your tax liability correctly?<\/b><\/font><\/div>\n<div><font face=\"Georgia\" color=\"#330033\" size=\"4\">\u00a0<\/font><\/div>\n<div><font face=\"Georgia\" color=\"#330033\" size=\"4\">Before the new implementations, the composite dealers paid a flat tax on the <b>overall sales turnover<\/b> but now after the changes the tax is only payable on the turnover comprising of taxable turnover and not the overall turnover. So now the composite dealer will have to pay less tax.<\/font><\/div>\n<div><font face=\"Georgia\" color=\"#330033\" size=\"4\">\u00a0<\/font><\/div>\n<div><font face=\"Georgia\" color=\"#330033\" size=\"4\"><b>Is your taxable turnover correct?<\/b><\/font><\/div>\n<div><font face=\"Georgia\" color=\"#330033\" size=\"4\"><br \/><\/font><\/div>\n<div><font face=\"Georgia\" color=\"#330033\" size=\"4\">Determine your taxable turnover by the following points:\u00a0<\/font><\/div>\n<\/div>\n<div><font face=\"Georgia\" color=\"#330033\" size=\"4\"><br \/><\/font><\/div>\n<div>\n<div><font face=\"Georgia\" color=\"#330033\" size=\"4\">1) The items in your inventory must be categorized as taxable, nil or zero-rated.<\/font><\/div>\n<div><font face=\"Georgia\" color=\"#330033\" size=\"4\">\u00a0<span style=\"white-space:pre\">\t<\/span><\/font><\/div>\n<div><font face=\"Georgia\" color=\"#330033\" size=\"4\">2) You are only supposed to apply the flat tax rate on the taxable goods.<\/font><\/div>\n<div><font face=\"Georgia\" color=\"#330033\" size=\"4\">\u00a0<\/font><\/div>\n<div><font face=\"Georgia\" color=\"#330033\" size=\"4\"><b>Check if your bills are according to the GST format<\/b><\/font><\/div>\n<div><font face=\"Georgia\" color=\"#330033\" size=\"4\">\u00a0<\/font><\/div>\n<div><font face=\"Georgia\" color=\"#330033\" size=\"4\">If you are a composite dealer, you have to issue a \u201cbill of supply\u201d<\/font><\/div>\n<div><font face=\"Georgia\" color=\"#330033\" size=\"4\">instead of \u201ctax invoice\u201d to your customers. It is important to mention \u201cBill of supply\u201d as a Bill title.<\/font><\/div>\n<div><font face=\"Georgia\" color=\"#330033\" size=\"4\"><br \/><\/font><\/div>\n<div><font face=\"Georgia\" color=\"#330033\" size=\"4\">You have to make sure that the bill generated is only for the sum of items purchased by the buyer no additional GST taxes should be imposed.<\/font><\/div>\n<div><font face=\"Georgia\" color=\"#330033\" size=\"4\">\u00a0<\/font><\/div>\n<div><font face=\"Georgia\" color=\"#330033\" size=\"4\"><b>Conclusion<\/b><\/font><\/div>\n<div><font face=\"Georgia\" color=\"#330033\" size=\"4\"><br \/><\/font><\/div>\n<div><font face=\"Georgia\" color=\"#330033\" size=\"4\">All the <a href=\"https:\/\/www.legalsalaah.com\/gst-registration-online.html\"><b>GST Registration Online<\/b><\/a> Composition taxpayer\u2019s have to make sure that every sales transaction should be recorded in their quarterly GST return <b>CMP-08<\/b> self-assessed tax.<\/font><\/div>\n<\/div>\n<div><font face=\"Georgia\" color=\"#330033\" size=\"4\"><br \/><\/font><\/div>\n<div><font face=\"Georgia\" color=\"#330033\"><br \/><\/font><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Imagine you have prepared data for the month of June to August and a new rule has been &#8230;<\/p>\n","protected":false},"author":1,"featured_media":357,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":["post-152","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-gst"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>GST compliance and Challenges for Composite Dealers<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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