Can the taxable person under the composition scheme claim input tax credit

No, taxable persons under the composition scheme cannot claim input tax credit (ITC). The composition scheme is a simplified tax scheme available under the Goods and Services Tax (GST) system in India, designed for small businesses with a turnover below a specified threshold.

Taxable persons who opt for the composition scheme are required to pay tax at a fixed rate on their turnover and are not eligible to charge GST to their customers. However, in return, they are not allowed to claim ITC on the inputs, input services, or capital goods they have purchased.

The composition scheme is aimed at reducing compliance burdens for small businesses by providing a simple taxation structure. As a trade-off for the simplified compliance, businesses under the composition scheme are not permitted to avail input tax credit.

It's important for businesses to carefully assess their eligibility and consider the pros and cons of the composition scheme before opting for it. If a taxable person chooses to operate under the composition scheme, they should be aware that they cannot claim input tax credit on their purchases.