Question16:

A composite dealer has made an interstate sale to another registered dealer (Regular )  although he is not allowed to do that . The tax has not been charged by the composite dealer . Now the Registered dealer wants to return the goods to that composite dealer. Please tell how he can do that .
 

Answer

As you already know that the composition dealer cannot do Interstate sale.  The conditions given in rule 5 will come into force and entitlement of composition scheme may be cancelled. There can be serious consequences Like demand  with Interest  & penalty. (Reply dt. 25/4/2018)