Answer

1. F

   Facts

   Yes. A composition taxpayer can buy goods from other States. You pay the IGST charged by the supplier as a cost, since there is no ITC. Rule 5 bars stock purchased from unregistered persons in other States in some cases.

2. P

   Provisions and law

   • Rule 5, CGST Rules 2017Conditions for composition, including no inter-State purchases from unregistered persons as stock, bill of supply wording and display at premises
   • Sec 10(4), CGST Act 2017A composition taxpayer cannot collect tax from customers and cannot take ITC
3. A

   Analysis

   Example: a Delhi shoe trader in composition buys Rs 10 lakh of stock from Agra with Rs 1.8 lakh IGST. He pays Rs 11.8 lakh and prices accordingly, with no credit. The restriction is on selling outside the State, not buying. Report inward supplies in GSTR-4 and keep e-way bills for incoming goods.

4. C

   Conclusion

   1. 1Buy from registered suppliers in other States as needed
   2. 2Treat GST paid as cost
   3. 3Keep invoices and e-way bills
   4. 4Report inward supplies in GSTR-4

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.