Answer

1. F

   Facts

   Yes. Composition taxpayers can buy from other States; the restriction is on making inter-State outward supplies.

2. P

   Provisions and law

   • Sec 10(2), CGST Act 2017Composition is not available to service providers (other than restaurants), inter-State suppliers, sellers of non-taxable goods, manufacturers of notified goods, and certain e-commerce suppliers.
   • Rule 5, CGST Rules 2017Conditions for composition, such as not being a casual or non-resident person and not holding goods bought inter-State or imported on the date of opting.
3. A

   Analysis

   You pay IGST charged by the supplier as part of cost, without credit. Only goods held on the date of opting for composition that were bought inter-State are a concern under Rule 5. Report such purchases in GSTR-4. Selling even once to another State breaks the scheme.

4. C

   Conclusion

   1. 1Buy from other States as needed.
   2. 2Treat IGST as part of cost.
   3. 3Report the purchases in GSTR-4.
   4. 4Never sell outside your State.

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