CMA Intermediate · Direct and Indirect Taxation · Composition Levy
Which of the following is a condition of the composition scheme under Rule 5 of the CGST Rules, 2017 regarding documents and display?
The dealer must write 'composition taxable person, not eligible to collect tax on supplies' at the top of every bill of supply, and 'composition taxable person' on each notice or signboard at the principal and every additional place of business.
- AThe dealer must issue a tax invoice marked 'composition' and display a signboard only at the principal place of business
- BThe dealer must mention 'composition taxable person, not eligible to collect tax on supplies' at the top of the bill of supply, and 'composition taxable person' on every notice or signboard at the principal and every additional place of businessCorrect
- CThe dealer must issue tax invoices for sales above a set value and bills of supply for the rest
- DThe dealer need only mention 'composition taxable person' on the bill of supply and nowhere else
Explanation
Rule 5(1)(f) requires the words 'composition taxable person, not eligible to collect tax on supplies' at the top of the bill of supply. Rule 5(1)(g) requires 'composition taxable person' on every notice or signboard at the principal place and each additional place of business. The other options either restrict the display or wrongly permit tax invoices.
Did you get it right without looking?
One question tells you little. A timed set on Composition Levy shows your real accuracy, how long you take and where you lose marks.
More Composition Levy questions
- A proper officer believes a composition dealer was ineligible for the scheme and issues a show-cause notice in FORM GST CMP-05. Under the Ru…
- A proper officer believes a registered person was not eligible for composition levy and issues a show-cause notice in FORM GST CMP-05. The p…
- A composition taxable person ceases to satisfy one of the conditions for the scheme on 12 August. Under the CGST Rules, 2017, what must he d…
- Sharma Traders, a composition taxable person in Indore, ceases to satisfy a condition of the scheme on 12 August. Under the CGST Rules, 2017…
- Under the CGST Rules, 2017, a registered person paying tax under the composition levy must mention certain words at the top of the bill of s…
- Which of the following persons is NOT permitted to exercise the option to pay tax under the composition levy, based on the conditions in the…