Dear Friends
X, a composite person registered in Chandigarh makes an inter-state supply to Delhi.
Now obviously he breaks one of the conditions of Composition Scheme and hence can no longer remain in Composition Scheme.
Rule 6. Validity of composition levy.- (1)The option exercised by a registered person to pay tax under section 10 shall remain valid so long as he satisfies all the conditions mentioned in the said section and under these rules.
(2) The person referred to in sub-rule (1) shall be liable to pay tax under sub-section (1) of section 9 from the day he ceases to satisfy any of the conditions mentioned in section 10 or the provisions of this Chapter and shall issue tax invoice for every taxable supply made thereafter and he shall also file an intimation for withdrawal from the scheme in FORM GST CMP-04 within seven days of the occurrence of such event.
Mr. X knows that if he makes inter-state supply he will break the condition but he goes ahead nonetheless and makes interstate supply.
My question is that when he makes interstate supply he needs to issue tax invoice as suggested by rule 6 above.
Will he charge IGST in tax invoice?
Will recipient be entitled to input credit of IGST?
Regards
Shivani
CAclubindia
