To be a composition dealer,, he/ she should not be engaged in the supply of goods not taxable in GST.
If there is a composition dealer having shop in 2 states register under same PAN. so can't he sell in one state the goods not taxable in GST.
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Quick Summary
Composition dealers under GST are generally restricted from supplying goods that are not taxable under the GST framework, such as alcohol or certain petroleum products. However, they are permitted to supply goods that are classified as 'exempted supplies'. It's important to distinguish between these two categories, as supplying non-taxable goods can violate the conditions of the composition scheme.
RESTRICTIONS & CONDITIONS OF COMPOSITION SCHEME DEALERS :
As per the Provision of Section 10(2) clause (b) of the CGST Act 2017, A person registered under Composition Scheme will not be allowed to sell any "Non-Taxable Supply of Goods" ( like Alcoholic liquor for Human Consumption, 5 Petroleum Products etc ).
However they are eligible to Supply Exempted Supply.
Note that Exempted Supply and Non-Taxable Supply are different.
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