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      Question

      A manufacturer in the Composition Scheme receives an

      order from a neighboring state. What happens if they fulfill this order? 
      A They pay a higher tax of 18% on that specific order. Correct Answer Incorrect Answer
      B They can fulfill it as long as they use an E-Way Bill. Correct Answer Incorrect Answer
      C They immediately become ineligible for the Composition Scheme. Correct Answer Incorrect Answer
      D They must pay IGST instead of CGST/SGST. Correct Answer Incorrect Answer
      E Nothing, as long as the total turnover is under ₹1.5 Crore. Correct Answer Incorrect Answer

      Solution

      Section 10 prohibits composition dealers from making inter-state supplies of goods. Violating this condition results in immediate disqualification from the scheme. For small taxpayers who want to avoid complex compliance, GST offers the Composition Scheme. • Eligibility Turnover: Up to ₹1.5 Crore (₹75 Lakhs for Special Category States). • Service Providers: A separate scheme exists for service providers with turnover up to ₹50 Lakhs. • Benefits: o Quarterly Payment: Pay tax via Form CMP-08 (instead of monthly). o Annual Return: File GSTR-4 once a year. • Restrictions: Cannot collect tax from customers, cannot claim ITC, and cannot make inter-state supplies of goods.

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