BMC Associates says Replied on 27th June,2026 11:05 AM

A composition dealer is required to pay GST under the Reverse Charge Mechanism (RCM) on inward supplies that are notified for reverse charge, at the applicable GST rates. This liability must be discharged separately, and Input Tax Credit (ITC) cannot be claimed on the tax paid under RCM since composition taxpayers are not eligible for ITC. Merely receiving inward supplies liable to RCM does not require the composition dealer to switch to the regular GST scheme. The dealer can continue under the Composition Scheme as long as all other eligibility conditions are satisfied. Conversion to the regular scheme is required only if the dealer becomes ineligible under the provisions of the GST law. For expert guidance on GST compliance, the Composition Scheme, and reverse charge provisions, businesses often rely on experienced chartered accountant firms in gurgaon. A qualified chartered accountant gurgaon, trusted ca firm in gurgaon, or professional ca in gurgaon can help ensure proper GST compliance and accurate tax filings.