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

Composition Dealers Can Procure Job Work Services from Other States, Despite Inter-State Sales Restrictions Under Section 10 CGST Act. A composition dealer inquired about sending goods for job work to another state, where the job worker operates under a regular scheme. Respondents clarified that composition dealers are generally barred from inter-state transactions under Section 10 of the CGST Act. However, it was noted that while inter-state sales are restricted, procuring job work services from another state is permissible. The discussion referenced C.B.I. & C. Circular No. 88/07/2019-GST for further clarification, emphasizing the need to distinguish between inter-state supply and job work services.