Composition Dealer

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A composition dealer faces restrictions on supplying exempt goods, potentially impacting their eligibility for the scheme under Section 10. While they can supply taxable goods alongside exempt ones, exclusively supplying exempt goods may disqualify them. The discussion also touches upon whether similar restrictions apply to the supply of exempt services, with a mention of a recent notification.

Shakthi

Shakthi

(Querist)

25 March 2021 A composition dealer cannot supply exempt goods. But whether can he supply exempt services. I believe there is a recent notification to this effect. Please clarify

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

25 March 2021 No restriction for a composition dealer to supply Exempted goods.

Shakthi

Shakthi

(Querist)

25 March 2021 You mean services sir ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

25 March 2021 Supply of exempt goods allowed.

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)

26 March 2021 in view of section 10, a composition dealer cannot supply exempt goods only though he can supply exempt goods with taxable goods. It means that if he supplies exempted goods exclusively he is not eligible to opt for composition scheme in view of section 10.

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