Find
Yes. A composition taxpayer must pay tax under reverse charge on notified supplies at the normal rate, without composition rates and without ITC. This is paid through CMP-08.
GST
Reverse charge for a composition taxpayer
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Provisions
Sec 9(3), CGST Act 2017; Sec 10(4), CGST Act 2017
Analysis
Example: a composition trader pays Rs 50,000 freight to a GTA under reverse charge. He pays 5 percent, Rs 2,500, in CMP-08 and cannot claim it back. If he rents a commercial property from an unregistered landlord and that falls under notified reverse charge for his case, tax applies there too. Check notified RCM categories each year.
Close
- Review expenses for notified reverse charge items
- Compute tax at the normal rate
- Report and pay in CMP-08
- Do not treat it as ITC
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