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Impact of closing stock

Rahul Furia (B.Com) (34 Points)

10 June 2017

If 1 ST JULY gst comes how the impact on closing stock

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2 Replies

rocky (accountant) (947 Points)
Replied 11 June 2017

you will get 40% tax input on goods sold from old stock

nirmalbhai thakker (117 Points)
Replied 11 June 2017

Generally all traders are not registered under CENTRAL EXCISE. So to nullify the effect of double taxation, Govt has introduced transitional provision of getting credit of excise element in stock held on implementation date. For getting CGST CREDIT OF excise element in stock in hand, dealer has to prove the same and for that He has to provide
1 details of excise paid on stock in hand
2 also provide proof that supplier has paid excise and
3 the purchase invoice should not be older than one year

If dealer is not in a position to prove the excise element in stock, than he is entitle to get credit of CGST/ IGST at the time of selling the said goods as ad-hoc credit. the rate of the same is as under.
1 if GST RATE IS LESS THAN 18% AND GOODS SOLD WITH IN STATE THAN 40% OF CGST COLLECTED

2 IF SOLD INTER STATE THAN 20% OF IGST COLLECTED

3 IF GST RATE IS 18 % OR MORE AND GOODS SOLD WITH IN STATE THAN 60% OF CGST COLLECTED

AND
4 IF SOLD INTER STATE THAN 30% OF IGST COLLECTED