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Composition scheme

Yash Chordia (PRACTICE) (58 Points)

23 June 2017

If goods purchase from inter state, but all sales are intra state.

Can composition scheme be opted under GST?

Thanks in advance

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4 Replies

CS Nisha Nishit (Practicing Company Secretary) (326 Points)
Replied 23 June 2017

Cannot opt for Composition scheme, as per the restriction prescribed in Section(10) (2), supplier should not be engaged in any inter-state Outward supplies of goods.

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CA Saloni (Manager-Accounts & GST Consultant) (5124 Points)
Replied 23 June 2017

Originally posted by : Yash Chordia
	If goods purchase from inter state, but all sales are intra state. Can composition scheme be opted under GST? Thanks in advance

Yes you can as the restrictions are on owtward supply not purchases.

Yash Chordia (PRACTICE) (58 Points)
Replied 23 June 2017

Thnks Nisha, my doubt is all sales/supply is within the state but purchase is from Outside State.

CS Nisha Nishit (Practicing Company Secretary) (326 Points)
Replied 23 June 2017

Yadavji,

I read it as interstate instead of intra-state. For intra-state purchase also note this point too.

As per rule of Composition Scheme, the goods held in stock by him on the 01.07.2017 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 he is opting for this Scheme.