Answer

1. F

   Facts

   Yes. Composition dealers pay tax under reverse charge at normal rates on notified purchases, without ITC. This is paid through CMP-08 and reported in GSTR-4.

2. P

   Provisions and law

   • Sec 10, CGST Act 2017Composition levy: turnover limits, rates, conditions and no ITC
   • Rule 62, CGST Rules 2017Quarterly CMP-08 statement and annual GSTR-4 return for composition taxpayers
3. A

   Analysis

   Composition tax on turnover does not cover reverse charge. Example: a composition shop pays a goods transport agency ₹50,000 for freight where reverse charge applies; it pays tax at the applicable rate in CMP-08 and reports it in GSTR-4 Table 4B or 4C. There is no credit for this tax.

4. C

   Conclusion

   1. 1List purchases on which reverse charge applies.
   2. 2Pay the tax in that quarter's CMP-08.
   3. 3Report them in GSTR-4 Table 4.
   4. 4Keep the documents.

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