Composition scheme, Supply through GeM, Gst at source
This query is : Resolved
26 May 2025
One of my client, being a composition dealer, supply goods through GeM to Govt.deptt. Govt. has deducted GST at source on one of his supply bill. On the basis of GST at source and on GeM supply, local GST officer has rejected my client's composition nature of supply, termed it is regular supply and issued a demand notice against the same. What should I do sir ?
12 August 2025
Composition Scheme Eligibility:
Composition scheme is available only if the dealer does not supply goods or services through e-commerce operators.
As per Section 10(2)(b) of CGST Act, if supply is made through an e-commerce operator, composition scheme is not applicable.
GeM as an E-Commerce Operator:
GeM is notified as an e-commerce operator under GST laws.
Supply of goods through GeM falls under supplies through an e-commerce operator.
GST at Source (TDS under Section 51):
Government departments deduct GST at source on payments made to suppliers through GeM.
Impact on Composition Scheme:
Because your client supplies through GeM, the supplier is not eligible to opt for the composition scheme for such supplies.
The local GST officer's demand notice is based on this premise and treats the supply as regular supply liable to full GST.
Composition scheme is available only if the dealer does not supply goods or services through e-commerce operators.
As per Section 10(2)(b) of CGST Act, if supply is made through an e-commerce operator, composition scheme is not applicable.
GeM as an E-Commerce Operator:
GeM is notified as an e-commerce operator under GST laws.
Supply of goods through GeM falls under supplies through an e-commerce operator.
GST at Source (TDS under Section 51):
Government departments deduct GST at source on payments made to suppliers through GeM.
Impact on Composition Scheme:
Because your client supplies through GeM, the supplier is not eligible to opt for the composition scheme for such supplies.
The local GST officer's demand notice is based on this premise and treats the supply as regular supply liable to full GST.
12 August 2025
Many many thanks for clarifications.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- CG Tax On residential property
- Post Office RD Interest
- Applicable TDS for Purchase of Flat from NRI
- Claiming exemption of perquisite for employee-owned car under New Tax Regime in ITR-2
- Eway bill for machinery reparing
- Building and other construction workers welfare cess act 1996
- Gift of mutual fund units to daughter
- ITR 3 FILING OF AN INDIVIDUAL (PARTNER IN A PARTNERSHIP fIRM)
- Annual return of gst limit
- NRI ITR2 account in 2025-26 ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
