Which out of the following is a correct statement regarding collection of composition tax from customers ?

CS Executive · Tax Laws and Practice · PYQS · June 2021
Which out of the following is a correct statement regarding collection of composition tax from customers ?
(A) The registered person under composition scheme is not permitted to collect tax. It means that a composition scheme supplier cannot issue a tax invoice.
(B) The registered person under composition scheme is permitted to collect tax. It means that a composition scheme supplier cannot issue a tax invoice.
(C) The registered person under composition scheme is permitted to collect tax. It means that a composition scheme supplier can issue a tax invoice.
(D) The registered person under composition scheme is not permitted to collect tax. It means that a composition scheme supplier can issue a tax invoice.

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: GST

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