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 .
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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