Heloo, I have a query related to Composition Scheme as follows-
A manufacturer procures RAW MATERIAL (RM) FROM ANOTHER STATE, manufactures the finished goods (FG) and makes intrastate supply of the FG.
Analysis & Query- As per Rule 5(1)(b) of the Composition Rules, in order to opt for composition scheme, a condition has to be fulfilled i.e. the GOODS held in stock by a supplier, on the appointed day, have not been purchased in the course of inter-State trade or commerce. In my case, the manufacturer has procured the RM from other state, which is in stock as on the appointed date.
So can the manufacturer in this case opt for Composition Scheme? Do the word GOODS as mentioned in conditional Rule 5(1)(b) include RAW MATERIAL also?
I have another query that can a composition dealer make Inter-State INWARD supply of goods? Since Section 10(2)(c) of CGST Act, 2017, specifically prohibits Inter-State OUTWARD supply.