Can a composition scheme dealer start its own website and sell it online in the same state?

GST Registrations and GST return Filings

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Hi there,

Based on your question , I can very well assume that you already know a composition dealer cannot make interstate supply (i.e. supply outside state)

I think there is no harm in having own website and going for within state supplies.

You need to take care of these points :-

  1. You however cannot have a gateway to accept address other then your own state address.
  2. Should mention properly that you are a composition dealer along with fulfilling all the compliance.
  3. The website has to be of your own. You cannot list yourself in market places such as amazon, Flipkart or indiamart etc.
  4. You have to maintain list of all the orders so as to justify that you have not supplied anything outside state.
  5. At the end, despite following all this, department may take a contrary view to impose tax on various grounds such as hiding the outside state supply. You have to then submit all the proofs that you are not guilty.

Why not get registered regularly instead :

  1. Composition will have heavy compliance in coming years when all the provisions will be duly enacted.
  2. Composition reduces pace of your growth as slowly business’ are preferring registered dealers giving them input credits.
  3. Why restrict to state when you can supply pan India. you only need to change address in the parcel.
  4. Incremental Compliance cost of being a regular dealer will be very less compared to profits you will be earning.
  5. You can then also sell on Amazon and other market places.
  6. Free from all worries and procure materials from everywhere.

We at Business Helpers can help you all steps to get converted from composition to regular dealer and can have a detailed discussion about the benefits.

Visit our website Business Helpers | Accountants, GST and Income Tax Consultants or contact us at rohit@businesshelpers.in for more discussions.

Hope this Helps.

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