The Central Board of Indirect Taxes and Customs (CBIC) has clarified that a person registered as a composition taxpayer cannot issue taxable invoices and can neither collect GST from his customers nor claim ITC on his purchases.
The clarification was a response to a viral video where a restaurant manipulated the customers despite being a composition taxpayer under the Goods and Services Tax (GST) law.
Responding to the video shared by Infosy’s former Director Mohandas Pai, the CBIC clarified that the composition taxpayer cannot issue a taxable invoice.
“As per GST law, a person registered as a composition taxpayer cannot issue taxable invoice and can neither collect GST from his customers nor claim the input tax credit on his purchases. The fact as to whether a person is a regular taxpayer or a composition taxpayer can be verified on the GST portal under “ Search Taxpayer” -> “Search by GSTIN/PAN” tab under the heading “Taxpayer Type”,” the CBIC clarified through its official Twitter handle.