IDT MCQ — A composition dealer can issue a Credit Note:

**A composition dealer can issue a Credit Note:** A) Yes B) No C) Only to registered persons D) Only for sales returns ✅ **Answer: (A) Yes** A composition dealer **can issue a Credit Note**. Under GST, a composition dealer pays a fixed percentage of turnover instead of calculating tax on each invoice—a simpler system for small businesses. While composition dealers are restricted in many ways (they cannot issue regular tax invoices), they **are allowed to issue Credit Notes** when goods are returned or adjustments are made. Think of a small kirana store owner on the simplified tax plan: if a customer returns goods or receives a discount, the store still needs to document that reduction. Credit Notes serve this necessary purpose beyond just sales returns—they also record other adjustments like post-invoice discounts. _Practise 1000s more free CA Final MCQs 👉 https://conferenza.in/mcqs — and discuss your approach below._