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Composition scheme

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Querist : Anonymous

Querist : Anonymous (Querist)

03 July 2017 I am carrying of retail cloth business and unregistered dealer under earlier law (i.e. VAT & excise) bcz cloth was exmpted goods in the previous law. Now under GST cloth is taxable goods. Our Annual turnover 40.00 lakhs (Approx). All the stock as on the appointed day is purchased from Unregistered dealer. Stock held as on 30/06/2017 included purchases from outside state & unregistered dealer.
My Q. is-
1) Can I opt. composition scheme under GST?
2) Declaration of closing stock as on 30/06/2017 is mandatory for me particularly if I am not interest to claim any input tax credit under GST on closing stock held on 30/06/2017.
3) If yes, then in which format.
4) if i want to go for composition scheme, then first to pay tax on the basis of reverse charge on our stock, or is there any specific expemtions to new registration made on the appointed date?

Amol S Joglekar

Amol S Joglekar (Expert)

03 July 2017 1. You can opt for composition......but mind well hence forth you will not buy from outside state..... else you will have to go by regular GST taxation method
2.and 3. Declare stock in TRAN 1
4. you dont have to pay RCM on closing stock

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