TaxTMI 
TaxTMI 
Composition Scheme for Scrap dealers.
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....omposition Scheme for Scrap dealers.<br> Query (Issue) Started By: - BVC&Co CharteredAccountants Dated:- 13-1-2023 Last Reply Date:- 21-1-2023 Goods and Services Tax - GST<br>Got 6 Replies<br>GST<br>A dealer who buys all types of scrap from unregistered suppliers and sells it to registered/unregistered persons. Query is whether such dealer can opt for composition scheme ( subject to threshold limi....
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....t Rs.1.5 Crores ) and pay output tax at 1% irrespective of the rate of tax applicable for each type of scrap items. and also RCM is NOT applicable on his purchases from unregistered dealers u/s 9(3) of CGST Act. Reply By Amit Agrawal: The Reply: There is no restriction under sub-section (1), read with sub-section 2, of Section 10 of the CGST, 2017 to opt for composition scheme merely because the....
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.... person is trader / dealer in 'scrap'. And registered person - who has opted for above said composition scheme - is also not liable to pay gst under RCM u/s 9 (3) of the CGST Act, 2017 against purchase of scrap from unregistered suppliers unless & until the supplier is 'Central Government, State Government, Union territory or a local authority' as per Notification No.4/2017-Centra....
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....l Tax (Rate) (as amended from time to time, till date). These are ex facie views of mine and the same should not be construed as professional advice / suggestion. Reply By KASTURI SETHI: The Reply: A composition dealer cannot purchase goods from unregistered person. Reply By Amit Agrawal: The Reply: Dear Shri Kasturi Sethi Ji, I am not aware about blanket restriction (if any) upon a composit....
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....ion dealer to purchase goods from unregistered person. Request you to kindly let me know relevant provision / rules / notification in this regard. Thanks and regards Reply By KASTURI SETHI: The Reply: Dear Sir, Re-examined the issue. I agree with your reply entirely. Reply By BVC&Co CharteredAccountants: The Reply: Thank you Amith sir for clarifying the issue with applicable provisions and ....
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....also Kasturi sir. Reply By Padmanathan Kollengode: The Reply: Considering the facts in this case, there is no bar/ restriction in opting for composition scheme. However once composition scheme is opted, the dealer cannot make any inter-state supply. Thus, dealer can opt for composition scheme provided his scrap sale is within the state only. Regarding RCM, purchases from unregistered suppliers i....
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....s not liable to RCM basis.<br> Discussion Forum - Knowledge Sharing ....