Composition scheme

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if manufacturer has made inter state supply of goods in the PY but not in CY
Does he eligible for composition scheme?

Replies (4)

Nothing is written  in the act  regarding your query  , section 10(2) (c) of the CGST act  2017  talks about  " he is not engaged  in making any inter -state  outward supply of goods "  form this it is not clear that  outward inter-sate supply before registration .

please confirm form others also .  

once registered in composition scheme, he can't make inter state supply.
py turnover or supply region is not the basis for opting the scheme.
how composition scheme is beneficial? as a business man opting the said scheme can't have ITC and can't collect tax from customers for example if not opting the scheme tax liability is 400000 and itc available is 270000 net tax payable would be 130000& while opting it nodoubt due to lower tax rates tax would be lets say 30000(to be paid) what about the loss of that 270000which he has paid?
you have to bear the burden of tax as the chain is being breaked....... you can also pass on the burden to your customer also by increasing price of the product but then it will be less competitive....(just an opinion)


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