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How to gst on last closing Stock

ASHISH MEHER (ARTICLE ASSISTANT) (25 Points)

21 May 2017

Sir, we have a trading compny of musical instruments. Now we have closing stock OF RS 15000000 approx (purchase on Cst and local Vat) then have any problem arising for this on GST

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10 Replies

CA Altamush Zafar (GST Consultant) (15907 Points)
Replied 21 May 2017

Have you taken all eligible credits under VAT Laws in your vat returns?

1 Like

ASHISH MEHER (ARTICLE ASSISTANT) (25 Points)
Replied 21 May 2017

Nt for all zafar sir

Dipak kumarr (Student Others) (39 Points)
Replied 21 May 2017

Regards !

please advise how will be the working for GST Input Credit for the Stocks

same as Mr Ashish bhai has asked

CA Altamush Zafar (GST Consultant) (15907 Points)
Replied 21 May 2017

Take all you can, only those can be transferred which will be shown in returns

1 Like

CA Altamush Zafar (GST Consultant) (15907 Points)
Replied 21 May 2017

Another option for traders where no invoice is available then you can take credits on stock held on appointed date provided you pass on the credits to consumer.

1 Like

krishan kumar (ca) (54 Points)
Replied 22 May 2017

outstanding CCR BALANCE IN RETURN CONVERTED IN GST BALANCE and you can use it

1 Like

Dipak kumarr (Student Others) (39 Points)
Replied 22 May 2017

Regards !

first off all I thank you experts for the useful advise & updates.

my query is related to the Input GST on closing Stocks as on 30.06.2017.

for example lets assume :

1) I am a Trader and the closing Stock value as on 30.06.2017 is Rs. 1,00,00,000- ( including both Local Purchase @ 5% & Interstate Purchases )
The applicable Excise Duty on Iron & Steel Materials is @ 12.5% & Local Vat is @ 5%

2) I am charged Excise Duty @ 12.5% on basic rate on Purchases from the manufacturer & for Purchases from trader the Excise Duty is included and only Vat @ 5% is charged by the Trader/ wholesalers

3) the Vat Input @ 5% for the month of June 2017 is Rs. 2,50,000- & the same is adjusted in the VAT payments payable for June 2017

My query is:

1) what will be GST Input on 01.07.2017 for both Local & Interstate Purchase Stocks

please advise

thanking you with regards
Dipak Kumarr

1 Like

CA NEHA RAMPURIA (Taxation Consultant) (1823 Points)
Replied 22 May 2017

1. since you are registered under vat laws the amount of vat credit brought fwd by you in your return would be available as itc in gst laws pertaining to fulfillment of certain conditions. 2. now since you are a trader and you are not registered as manufacturer you cant take the credit of excise duty paid by you. You are provided with 2 options option 1: applies when you have invoices or documents evidencing payment of excise duty by you. On fulfillment of certain conditions youll be getting the input tax credit under gst. option 2 : applies when you don't have documents or invoices evidencing payment of excise duty. here you would be getting ITC equal to 40% of CGST applicable on supply of such goods( held in stock) after appointed date and shall be credited after CGST payable on supply of such goods have been paid. however this itc of 40 % shall be available on fulfillment of certain conditions. for more queries or clarifications you can mail me at neharampuria @ gmail.com

2 Like

Dipak kumarr (Student Others) (39 Points)
Replied 22 May 2017

Regards

thank you madam CA Nehaa Ji

mahendra sahoo (Gst Practicion) (700 Points)
Replied 01 September 2017

Madam how to compute itc in practically of Mr dipak ak Kumar above example, just one line, because it confused me, My q is on which value we compute itc 40% of 2.5% ( cgst)? And if we excise registered dealer case duty paid invoice available in such closing stock, how much itc claim on same example?