composition scheme

[d.v. gupta]

sir,

A dealer is registered under Dvat acat as well as CST act. dealer is a civil contractor and doing contract of govt. only. Can dealer opt coposition scheme of 3% despite having central sales tax registration.

AI Summary

3% Composition Scheme Only for Local Dealers; No Interstate Transactions Allowed for CST Registered Dealers A dealer registered under both the DVAT and CST acts, working as a government civil contractor, inquired about opting for a 3% composition scheme. The response clarified that the composition scheme is applicable only to local dealers who conduct transactions within the state. Although CST registration is not required for the scheme, if the dealer holds CST registration, they must ensure not to engage in any interstate transactions to remain eligible for the scheme.