This discussion clarifies the rules surrounding the composition scheme. It confirms that a dealer operating under the composition scheme is permitted to purchase goods from another dealer who is also under the composition scheme. Furthermore, there are no adverse consequences associated with such transactions.
24 February 2024
I have two queries related to the composition scheme as below: 1. Is one composition dealer allowed to purchase goods from another composition dealer? 2. Are there any adverse consequences on purchase by one composition dealer from another composition dealer?