Am i eligible for composition if i purchase from other state

1 condition is der in rule 2 of composition tht whn u opt for composition u dun have stock which is purchased interstate or from agent or branch outside state or imported goods on d date of applying for composition.
sorry under rule 3 of composition
sorry under rule 3 not 2

yes you can opt for composition

for details please read article by CA Mithun Khatry at www.gstbible.com/blog

Yes, you may opt for composition scheme even if you want to purchase goods interstate provided you are not ineligible on the basis of any other grounds.

However, as far as two other points that were raised in this query are considered, my view is -

1. Purchase Return :- Under GST, any purchase return is to be treated as supply and has to be made under the cover of an invoice. Since, you are purchasing interstate, you will not be able to make any purchase return as it will lead to inter state supply, making you ineligible for composition scheme.

2. Reverse Charge on Services of GTA :-  If you are covered under Notification No. 13/ 2017- Central Tax (Rate) dated 28th June, 2017 & 10/2017- Integrated Tax (Rate) dated 28th June, 2017 as Service Receiver liable to pay tax under RCM, then also there is no restriction to avail composition scheme . Rule 5 of Composition Rules states that composition dealer shall pay tax under sub-section (3) or sub-section (4) of section 9 on inward
supply of goods or services or both. The only confusion being is whether the rate of composition apply or normal rate. However, as per my understanding, normal rates shall apply on reverse charge services availed by you and you shall pay taxes according . Composition rates are applicable for supplies made by "you", not on supplies received by "you".

 

My counter query is can the credit of taxed paid sub-section (3) or sub-section (4) of section 9 be taken by the composition dealer ?

what is the reason behind such rule..???

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