Discussions Forum | ||
Home Forum Goods and Services Tax - GST This | ||
A Public Forum. Anyone can participate to share knowledge. |
||
---|---|---|
We acknowledge the contributions of Experts/ Authors. | ||
Submit new Issue / Query |
||
ITC reversal when switching from regular to Composition scheme, Goods and Services Tax - GST |
||
|
||
ITC reversal when switching from regular to Composition scheme |
||
My neighbour owns a general stores(provision stores kirana stores) shop and doesn't maintain any sales record .He only maintains purchase bills. So what he does is he adds 10/8% margin on purchase value and compute rate wise sales and accordingly pay GST As if purchases made during a month are sold during that month itself i.e. GST calculations are made under an assumption(due to lack of records) of zero inventory at the end of the day. My question is NOW he wants to opt for composition scheme and as per the act he has to reverse ITC taken on inputs held in stock on the day prior to switching to composition scheme. But per our GST calculations all sales are made out of current stock i.e. one which is acquired on or after 1st April 2020. So he should not be liable for ITC reversal Posts / Replies Showing Replies 16 to 16 of 16 Records Page: 1
Sh.Chhatra Jain Ji, Yes, Sir. I agree with you. This is the best recourse and fool-proof. Only difficulty is that the dealer will have to manage and managing is much easier than facing the rigours of litigation. What is avoidable should be avoided i.e. SCN. Page: 1 Old Query - New Comments are closed. |
||