Closing stock

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Ajay Kumar (Querist)

27 June 2017 we have registered as a composite dealer under state VAT laws..we are expecting to have closing stock on 30/06/2017...can we sell that stock from 01/07/2017 without collecting tax like how we use to do...or do we need to pay tax on such stock along with new stock we will purchase and sell from 01/07/2017 under GST regime...

Amol S Joglekar

Amol S Joglekar (Expert)

27 June 2017 you need to sell the stock with new GST rate, from 01/07/2017

Ajay Kumar

Ajay Kumar (Querist)

27 June 2017 Sir, thank you.......earlier on that stock we paid some tax of which we are not eligible to claim input tax credit since we are under composition scheme....then how can we pay tax on such goods when we are not allowed to take input tax credit.....or can we avail such ineligible credit under vat laws now under GST regime and pay the tax on such closing stock..

Amol S Joglekar

Amol S Joglekar (Expert)

27 June 2017 are you willing to continue to go by COMPOSTION scheme under gst as well?

Ajay Kumar

Ajay Kumar (Querist)

27 June 2017 No, sir.... we would like to avail input credit....

Amol S Joglekar

Amol S Joglekar (Expert)

27 June 2017 since under VAT you had opted for composition, you have forgone your right to claim ITC. You have already enjoyed the fruits of paying lower VAT, isnt it?

Ajay Kumar

Ajay Kumar (Querist)

27 June 2017 obviously right sir..

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