composition dealer

[VIGNESH]

sir.Kindly clarrify. Can a composition dealer send his goods for job work to other state . While Job worker is under regular scheme/dealer?

[KASTURI SETHI]

Sh.Vignesh Ji,

Pl. elaborate your query with full facts and circumstances. 

[Sadanand Bulbule]

Dear Sir

According to my understanding, composition dealer is barred from carrying out inter-state transactions.

[KASTURI SETHI]

Any inter-State supply is not permitted to the Composition dealer under Section 10 of CGST Act. Now the question arises whether job-work is supply or not ?   

See C.B.I. & C. Circular No. 88/07/2019-GST, dated 1-2-2019.

So full facts are required.  

 

[Shilpi Jain]

To me the question seems whether the composition dealer can procure job work service inter-State.

[Shilpi Jain]

If that's the question then the composition dealer is not barred from procuring inter-State. Bar is only on inter-State sales.

[Padmanathan KV]

I agree with Shilpi Ma'am. Composition Dealer is not barred from procuring job work services from outside the state. Restriction is only on inter-state sale.

AI Summary

Restriction on inter-state supplies bars composition dealers from inter-state sales, but procuring inter-state job-work services can be allowed. Composition dealers are precluded from making inter State supplies; the determinative issue is whether sending goods for job work constitutes a supply. Procuring job work services from another state is not per se barred under the composition scheme, as the restriction targets inter State sales by the composition dealer. Factual particulars and guidance on supply characterization must be examined to determine compliance.