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APPLICABILITY OF COMPOSITION SCHEME

akhilesh (student) (54 Points)

05 August 2020

Hi,
I have a client who is into sale of milkshakes.. and he is registered as composition dealer under gst. Now, the question is will he be eligible to resgister in swiggy or zomato.

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9 Replies

Danish Abbas (153 Points)
Replied 05 August 2020

No he is not eligible to register on swiggy or Zomato as they are ECO Nd composition dealer cannot make supply through ECO.

akhilesh (student) (54 Points)
Replied 05 August 2020

Thank you for the rly, it helped me a lot

Danish Abbas (153 Points)
Replied 05 August 2020

Ur most welcome

sabyasachi mukherjee (26047 Points)
Replied 05 August 2020

It's an absolute wrong reply.
composition dealer can easily take the help of logistics partner.

Danish Abbas (153 Points)
Replied 05 August 2020

As per the Provision of Section 10(2)(d) of the CGST Act 2017, persons who are supplying goods through E-commerce operator is not eligible to opt for Composition Scheme u/s 10(1)

Read more at: https://www.caclubindia.com/forum/restaurant-under-composition-scheme-502387.asp

sabyasachi mukherjee (26047 Points)
Replied 05 August 2020

The reason is that e commerce operators cannot opt for composition scheme.
Taxable person having food business and beverages drink cannot opt for composition scheme.

Vijayprakash P (1313 Points)
Replied 05 August 2020

Section 10(2)(d) of CGST Act stated that a composite dealer cannot engaged in making any supply of goods through Electronic Commerce Operator (ECO) who is required to collect tax at source under section 52 of this act. A composite dealer cannot collect tax under GST.

Pankaj Rawat (GST Practitioner) (55032 Points)
Replied 06 August 2020

Yes the Section 10(2)(d) restricted the Composition to supply through E-commerce , but those E-commerce who are deducting TCS u/s 52 of CGST Act .
Thus if Swiggy or Zomato is deducting TCS , then Composition dealer cannot supply through them.