TMI BlogComposition Scheme for Scrap dealers.X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 limit 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) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 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 CG ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ST 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-Central 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 composition dealer to purchase goods from unregistered person. Request you to kindly let me know relevant provision / rules / notification in this regard. Thanks and rega ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rds - 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 also Kasturi sir. - Reply By Padmanathan Kollengode - The Reply = Considering the facts in this case, there is no bar/ restriction in opting for compositio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 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 is not liable to RCM basis. - Composition Scheme for Scrap dealers. - Query Started By: - BVC&Co CharteredAccountants Dated:- 13-1-2023 Goods and Servi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ces Tax - GST - Got 6 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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