intrastate raw material purchase for composite vendor/dealer.

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can a person under composite scheme, purchase raw material from other state. (sale is in one state only where business is registered)
Replies (15)

Yes, but from registered dealer only.

No ... person under composite scheme cannot purchase raw material from other state...

if he do then he has to registered under GST Act and to charge the tax as per the Act

i was about to write thanks for Mr. Dhiraj lal But Mr. vineet came up with opposite answer. I'm confused again.
anyone with more clarity on this topic who can quote GST clause/section/subsection for justification

It is confirm from my opinion  If a dealer is involved in inter-State trading, then he cannot opt for the scheme.

3. 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.
(2) The registered person paying tax under section 10 may not file a fresh intimation every year
and he may continue to pay tax under the said section subject to the provisions of the Act and
these rules.

 

This is the part of GST act

section 10 [2] [c] chapter III says person should not be involved in OUTWARD supply of goods. it does not speak about inward supply.
I'm a manufacturer in one state. most of my raw material comes from same state and my products are also being sold in same state. only couple of items of raw material i buy from adjacent state.

will that stop me from going for composite scheme

At the time of GST applicable will you have the stock purchased from interstate trade will be in your hand

and first of all what is your turnover 

turnover is less than 50 lacs. i won't have stock of interstate purchase on the date of GST application.

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;

 

I'm a bakery and confectionery manufacture with preceding year turnover less than 50 lacs. my sale is only in one state where my business is registered. most of raw material also gets purchased from same state. only couple of raw material items are purchased from other state.
i will be purchasing interstate raw material from registered dealer only.
can I go for composite scheme.

sir it is confirm composition dealer cannot do interstate sale or purchase as i had also confirm from 3 professional telephonically.

he can do only intra sale and purchase

Ok. thanks sir


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