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Stock as on 31-03-2017

PRANAY JAIN (Director) (248 Points)

12 September 2016

Kindly let me know what will be implication of GST implementation on closing stock as on 31-03-2017. Whether one has to pay both SGST and CGST on existing stocks if yes then how will a trader claim input credit of CGST on his existing stock.

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10 Replies

CA HARDIK (PROPRITER) (79 Points)
Replied 13 September 2016

for goods on vat paid and in stock then it will be converted into SGST & goods for which excise or service tax credit are available then it will be converted into CGST credit. for cst no credit currentley available so option of IGST are arise.

PRANAY JAIN (Director) (248 Points)
Replied 13 September 2016

What will happen to goods on which no excise credit is available as these goods are purchased within state from distributor or dealer other than manufacturer.

CA HARDIK (PROPRITER) (79 Points)
Replied 13 September 2016

dear sir in short you are worry about the vat apid on goods?

it will be coverted into SGST credit.

PRANAY JAIN (Director) (248 Points)
Replied 13 September 2016

I am not asking about SGST.

But applicability of CGST on sale of existing stock as on 31-03-16, which is bought from within state from person other than manufacturer, because excise credit is not with final trader it is with any dealer or distributor who has purchased directly from manufacturer.

CA HARDIK (PROPRITER) (79 Points)
Replied 13 September 2016

in that case you cant avail credit for this goods on excise paid by dealer other than first stage or second stage.

Madhukar N Hiregange (Chartered Accountant) (39034 Points)
Replied 21 September 2016

Excise duty credit for traders is not available in GST Model law- However a manufacturer who is trading or a registered dealer under CE can pass on the credit to the next stage. This is not EQULA & FAIR. - needs ot be amended to allow duty paid stocks at least with duty paying documents to be enabled credit.

Sreepada M B (Sr. Manager - Finance & Accounts) (23 Points)
Replied 21 September 2016

We are distributors in India for foreign manufacturer. We import goods and pay CVD on all such imports. We pass on CVD thru MODVAT invoice to those who wish to avail credit. But 50% of our customers do not ask for MODVAT invoice and we do not pass on the credit.

What will happen to the stock as on 31-03-2017? Will we be able to get it converted in to IGST and use it for payment of CGST and SGST and pass on the benefit by price adjustment or will it be cost to us (traders)? Is there a chance of Govt allowing passing on CVD to our customers for a period 6 months/1 year so that customer can avail the credit treating it as IGST?

PRANAY JAIN (Director) (248 Points)
Replied 21 September 2016

Dear sir, I am a trader and I receive Excise paid Invoice from manufacturer, i further tax invoice(VAT) the goods to my other retailers. I am regisered in Service Tax and CST but not excise. So would my retailers be able to take excise input credit on their stock on 31st March, since the same is excise paid by manufacturer.

Shankar Sharma (505 Points)
Replied 22 September 2016

In present VAT system excise credit will be available for only those units who have opted for CENVAT. But most of small scale units and traders do not have registration under CENVAT. But they will have excise levied stock under present system. GST subsumes excise also. If credit for excise is not allowed for such units, then it becomes double taxation, which is against the aim of GST.