Answer

1. F

   Facts

   No. A composition taxpayer cannot collect tax from customers under Sec 10(4). You issue a bill of supply and pay tax from your own margin.

2. P

   Provisions and law

   • Sec 10(4), CGST Act 2017A composition taxpayer cannot collect tax from the buyer and cannot claim input tax credit.
   • Sec 31(3)(c), CGST Act 2017A composition taxpayer or a person supplying exempt goods or services issues a bill of supply instead of a tax invoice.
   • Sec 10(5), CGST Act 2017If a person not eligible pays under composition, tax and penalty are payable as if registered normally.
3. A

   Analysis

   Your bill should say composition taxable person, not eligible to collect tax on supplies. You must also display composition taxable person on the signboard. If you wrongly show GST on bills, the tax collected must be paid to the Government and penalty may apply. Correct your billing software settings.

4. C

   Conclusion

   1. 1Use bill of supply format with the required declaration.
   2. 2Remove any GST line from bills.
   3. 3Display composition taxable person at the shop.
   4. 4Pay composition tax through CMP-08.

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.