Chartered Accountant
316 Points
Joined January 2016
One of the conditions under Composition scheme is that he cannot make inter-state supplies. However, if you can justify that POS falls in the same state where supplier has registration, then it shall not be an 'inter-state' supply rather it shall be an 'intra-state' supply though customer does not belong to such state.
For example, Mr. A (customer) from Gujarat went to Mr. B (supplier) in Karnataka for purchase of some goods. Assume that these are counter sales. In such case, POS is Karnataka. Since POS and Supplier fall in same state, it shall be an 'intra-state' supply but not 'inter-state' supply.
Hope it is clear!