composition dealer u/s 10

[Guest]

whether composition dealer can purchase goods from another composition dealer or not. if yes what will be the effect of that transaction in the hand of recepient composition dealer?

AI Summary

Can Composition Dealers Buy from Each Other Under GST? Yes, But No Input Tax Credit Allowed. Reverse Charge May Apply. A discussion on a forum addressed whether a composition dealer under GST can purchase goods from another composition dealer and the implications of such a transaction. The consensus among participants was that there is no restriction on such purchases, and it does not adversely affect the recipient dealer. However, both parties cannot claim Input Tax Credit (ITC). Some participants mentioned the reverse charge mechanism may apply if the purchase value exceeds a certain threshold, but generally, the transaction has no significant impact on the recipient.