Composition scheme

I have purchase from outside state but sales is only in local state can I opt for composition

Replies (4)
yes if all other conditions are fulfilled u can opt
Conditions and restrictions for composition levy
[1] The person exercising the option to pay tax under section 10 shall comply with the following conditions:

[a] he is neither a casual taxable person nor a non-resident taxable person;

[b] the goods held in stock by him on the appointed day have not been purchased in the course of inter-State trade or commerce or imported from a place outside India or received from his branch situated outside the State or from his agent or principal outside the State, where the option is exercised under sub-rule [1] of rule 1;

[c] the goods held in stock by him have not been purchased from an unregistered supplier and where purchased, he pays the tax under sub-section [4] of section 9;

[d] he shall pay tax under sub-section [3] or sub-section [4] of section 9 on inward supply of goods or services or both;

[e] he was not engaged in the manufacture of goods as notified under clause [e] of subsection [2] of section 10, during the preceding financial year;

[f] he shall mention the words 'composition taxable person, not eligible to collect tax on supplies' at the top of the bill of supply issued by him; and

[g] he shall mention the words 'composition taxable person' on every notice or signboard displayed at a prominent place at his principal place of business and at every additional place or places of business.

As per Section 10, Subsection 2(c) of CGST, Composition Scheme can't opt for the registered person if he is engaged in making any inter-state supplies of goods, but he can purchase from Interstate and can supply locally.

thank you for the update

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
28 July 2026
Senior accountant

RJ Public School

Bengaluru

B.Com

View Details
Company
ARTICLESHIP 15 July 2026
CA Articles

Kinjal H Shah & Co.

Mumbai

CA Foundation

View Details
Company
ARTICLESHIP 23 July 2026
Article

Gianender & Associates

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 07 July 2026
Articleship

Jawahar and Associates Chartered Accountants

Hyderabad

CA Inter

View Details
Company
31 July 2026
Senior Accountant - Bunia, Democratic Republic of Congo

AD GLOBAL LTD

Mumbai

B.Com

View Details
Company
Featured 18 July 2026
CA Articleship

apricus india

Mumbai

CA Inter

View Details
Company
16 July 2026
Manager - Finance & Accounts

Aliens Group

Hyderabad

CA Final

View Details
Company
23 July 2026
Semi qualified CA

Garg Bros & Associate CA

New Delhi

CA Inter

View Details
Follow