COMPOSITION SCHEME

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... COMPOSITION SCHEME
Query (Issue) Started By: - Shreyansh Agrawal Dated:- 4-9-2017 Last Reply Date:- 15-11-2017 Goods and Services Tax - GST
Got 5 Replies
GST
DEAR EXPERTS, MY CLIENT IS A REGULAR DEALER UNDER VAT. NOW HE OPTED COMPOSITION SCHEME UNDER GST BUT STOCK HELD ON APPOINTED DAY INCLUDE TAXFREE, TAXABLE AND EVEN HE HAS STOCK WHICH ARE PURCHASED FROM UNREGISTERED DEALER. IN TRA .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... NSITIONAL PROVISIONS OR ANY OTHER SEC OF GST HAS NOT MENTIONED THAT YOU HAVE PAY TAX FOR INPUT HELD IN STOCK FOR WHICH CREDIT IS TAKEN OR FIRSTLY, IT IS TAXFREE UNDER EARLIER LAW AND NOW IT BECAME TAXABLE UNDER GST OR YOU HAVE TO PAY TAX ON REVERSE CHARGES BASIS PURCHASED FROM UNREGISTERED DEALER UNDER EARLIER LAW . WHETHER MY INTERPRETATION TO THE SEC IS CORRECT??? Reply By Rajagopalan Ranganat .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... han: The Reply: Sir, As per Section 10 (4) of CGST Act, 2017 "a taxable person to whom the provisions of sub-section (1) apply shall not collect any tax from the recipient on supplies made by him nor shall he be entitled to any credit of input tax. Therefore since your client has opted for composition scheme he is not eligible to take credit of duty paid on the stocks held as on the date o .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... n which he opts for composition scheme. Reply By KASTURI SETHI: The Reply: Yes Sir. Your interpretation is correct. Stock held by your client has to be cleared on payment of GST to be eligible for composition scheme. Section 10 attaches more strings in addition to this one.l Reply By Himansu Sekhar: The Reply: You need not past tax on reverse charge on the goods purchased before first July fro .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... m unregistered person Reply By MARIAPPAN GOVINDARAJAN: The Reply: I endorse the views of Shri Ranganathan Reply By SELVAKUMAR MUTHURAJ: The Reply: Regular VAT dealer with Closing stock of ₹ 15,00,000 and there is no ITC as per last VAT return. Now he opts for Composition under GST. Whether he needs to pay tax on the closing of ₹ 15,00,000 as per Sec.18(4) of CGST Act
Discussio .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... n Forum - Knowledge Sharing .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X