Answer

1. F

   Facts

   No. A composition dealer cannot collect GST from customers under Sec 10(4). They issue a bill of supply marked composition taxable person, not eligible to collect tax on supplies, and pay tax from their own pocket.

2. P

   Provisions and law

   • Sec 10(4), CGST Act 2017A composition dealer cannot collect tax from customers
   • Rule 5(1)(f), CGST Rules 2017Composition dealer writes composition taxable person, not eligible to collect tax on supplies at the top of the bill of supply
   • Rule 5(1)(g), CGST Rules 2017Composition dealer displays composition taxable person on the signboard at every place of business
3. A

   Analysis

   If Search Taxpayer shows Composition and the bill adds 5 percent GST on ₹1,000, the ₹50 collected is not allowed. Ask them to remove it. They must also display composition taxable person on their board. Tax collected anyway must be paid to the government under Sec 76.

4. C

   Conclusion

   1. 1Check taxpayer type on Search Taxpayer.
   2. 2Point out that composition dealers cannot charge GST.
   3. 3Ask for a bill of supply without tax.
   4. 4If refused, complain to the state GST department or the National Consumer Helpline.

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