Inter-state for composite dealer notice

This query is : Resolved

Kollipara Sundaraiah (Querist)
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31 May 2024 sir,
A Registered composite scheme dealer notice issued from state gst officer. notice detailes mentioned below.
M/s. xxxxxxxxxxxxxxxxx, , Prop: xxxxxxxx
is a registered tax payer under GST Act 2017, and assessee on the rolls of Assistant
Commissioner (ST), xxxxx Circle. The Tax payer has opted for Composition Scheme
under the Act.
As seen from this office records it it observed that the tax payer has effected
Inter State outward supplies to various Traders as below:
Sl.No. E-Waybill No. doctuement.no. date hsn code e-waybill amount
1. 111111111 tax invoice 23-02-20 5407 33763
2. 2222222 tax invoice 25-02-20 5407 51241
Whereas, as per Section 10(2) ( C) of GST Act and Rules 2017, the
Composition Tax Payer is not eligible to make any inter-state outward supplies .
In view of the above, M/s.xxxxxxxxxx is hereby directed to
file their written objections if any, against the above said inter-state outward
supplies of goods within 7 (seven) days of receipt of this notice, failing which action will
doubt:
dealer notice received after procedure.

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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09 July 2024 Based on the notice you've received from the State GST officer regarding the inter-state outward supplies made by your registered composite scheme dealer under GST Act 2017, here are the key points and recommended actions:

### Notice Analysis:

1. **Nature of Notice**: The notice states that as a composition scheme taxpayer, your business is not eligible to make inter-state outward supplies under Section 10(2)(c) of the GST Act and Rules 2017.

2. **Details Mentioned**: It specifies the e-waybill numbers, document numbers, dates, HSN codes, and amounts of the inter-state outward supplies made by your business.

3. **Action Required**: The notice directs you to file written objections, if any, against these inter-state outward supplies within 7 days from the receipt of the notice. Failure to respond within this period may lead to further action by the authorities.

### Recommended Actions:

1. **Review Transactions**: Verify the details mentioned in the notice against your records to ensure accuracy.

2. **Understand Compliance Requirements**: As a composition scheme taxpayer, you are restricted from making inter-state outward supplies. It's crucial to understand why these supplies were made and ensure compliance with the GST laws.

3. **Prepare Written Objections**: If you believe there has been a misunderstanding or if there are valid reasons for these transactions (such as errors or specific circumstances), prepare a detailed written objection explaining your position. Include any relevant documents or evidence supporting your case.

4. **Seek Professional Advice**: If needed, consult with a GST professional or legal advisor who can provide guidance based on your specific situation and the GST laws applicable to your business.

5. **Timely Response**: Ensure that your written objections are submitted within the stipulated 7-day period to avoid any adverse actions or penalties.

### Conclusion:

Addressing the notice promptly and accurately is essential to mitigate any potential issues or penalties. Review the notice carefully, gather necessary information, and prepare your objections accordingly. Compliance with GST regulations is crucial to maintaining smooth business operations and avoiding legal repercussions.