I have purchase from outside state but sales is only in local state can I opt for composition
4 Replies
RAMESH D MODI
(Proprietor)
(4869 Points)
Replied 29 June 2017
yes if all other conditions are fulfilled u can opt
dattaraj meshram
(68 Points)
Replied 29 June 2017
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.
[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.
Tarak Shah
(Chartered Accoutants)
(105 Points)
Replied 29 June 2017
As per Section 10, Subsection 2(c) of CGST, Composition Scheme can't opt for the registered person if he is engaged in making any inter-state supplies of goods, but he can purchase from Interstate and can supply locally.
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