04 June 2020
Retailer dealing in Mens wear, having GSTIN in regular scheme till 31.03.20 wants conversion from regular to Composition scheme wef 01.04.20.
Query 1 : Does GSTIN holder has to pay GST on closing stock as on 31.03.20 on which already GST credit has been taken when the same were purchased under Regular scheme ?
Query 2: If yes then, Can CENVAT Credit as on 31.03.2020 if any can be adjusted against tax liabilty of GST on stock in hand as on 31.03.2020 ?
05 June 2020
Yes in case of regular tax payer shifting to composition he has to reverse input credit already claimed by him on closing stock standing just before applying for composition levy in terms of Section 18(4)(a) and shall also b e required to file ITC-03 declaring the closing stock.
CAclubindia
