Q. compiste scheme dealer question

Question

sir,

A registered composite scheme dealer notice received from state gst officer notice details mentioned below
S.no.   e-waybill no.       doc.no    .  dt;                    amount    commodity
1.        171256446         no.4        21-09-20              215895    cloth
2.         121163454         no 9        25-01-20             85750     cloth
Sec 10(2)(c) gst act composite scheme dealer is not eligible to make any inter-state outward supply
Question:
Dealer notice received from procedure.

Answer 1

Section 10(2)(c) of the CGST Act, 2017:

This specific clause under Section 10(2) states the conditions under which a taxpayer is ineligible to opt for the composition scheme. According to Section 10(2)(c), a taxpayer is not eligible for the composition scheme if the taxpayer is engaged in making any supply of goods that is not leviable to tax under this Act or if the taxpayer is engaged in making any inter-State outward supplies of goods.

In simpler terms, if a business makes any supply of goods or services that are not taxable under the GST Act, or if it makes any outward supplies of goods or services to another state (inter-State supplies), it cannot opt for the composition scheme.

Regards, CA. Praveen Sharma

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