TaxTMI 
TaxTMI 
Respected professionals, one of my clients is an registered composition dealer in GST. He receives payment from Different state thus selling them goods. Is there is any way, wherein he can continue doing interstate sale ; or any walk around the law or practice?
Interstate Sale by Composition Dealer
13 Aug 2026 
4 Replies 
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GST composition dealers cannot directly dispatch goods interstate and must use genuine reseller arrangements or shift to regular registration.
GST composition dealers cannot directly make inter-State outward sales of goods while remaining under the composition scheme. Movement of goods from one State to another pursuant to sale attracts the restriction, and payment or invoicing arrangements cannot cure it. A customer or payment originating in another State does not itself make a supply inter-State; actual delivery, movement and place-of-supply facts govern. A genuine independent reseller may separately make an inter-State sale, while businesses undertaking direct inter-State sales should operate under the regular GST scheme. (AI Summary)
GST composition dealers cannot directly make inter-State outward sales of goods while remaining under the composition scheme. Movement of goods from one State to another pursuant to sale attracts the restriction, and payment or invoicing arrangements cannot cure it. A customer or payment originating in another State does not itself make a supply inter-State; actual delivery, movement and place-of-supply facts govern. A genuine independent reseller may separately make an inter-State sale, while businesses undertaking direct inter-State sales should operate under the regular GST scheme. (AI Summary)