Composition Levy
This query is : Open
Simran Katyal
(Querist)
29 June 2017
Good Evening,
We have client who is currently registered in DVAT under normal scheme (dealing in inter-state purchases and intra-state sales), however, purchases were not through C-Form and VAT was paid @ 5%.
Now since his turnover is around Rs. 40L, he wants to opt for Composition scheme under GST, as under Sec 10 of CGST act, no restriction is there on inter-state purchases.
However, he is having stock in hand of around Rs. 20L (inter-state purchases). But as per Rule 3(1)(b) of Composition Rules, goods held on appinted date cannot be that from inter-state purchases.
If the inter-state purchases are not restricted under Composition scheme in GST, what is the logic of such restriction under Rule 3(1)(b).
Kindly clarify.
CA Rashmi Gandhi
(Expert)
29 June 2017
It is quite confusing & misleading but the rule is there so we have to follow
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