Gst composition scheme for cloth dealer

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 August 2017 Businessman dealing in Cloths, before 30 June,17 Cloth exempt from Tax. Now it is 5% under GST. Assessee Hold stock Rs. 40 Lacs. Mostly Inter-state purchases. Now, he want to avail Composition Scheme. Can He Avail Composition Scheme. 2nd is if, its allow than such stock when taxable, and what is tax rate on such stock.

I read that such Cloths dealer ( Inter-state purchases Stock hold) not avail Composition Scheme. is it right.

Secound is, if all stock is with in state purchases. and all are exempt under VAT than on what is GST rate on such stock ( 1% or 5%) under Composition Scheme. when GST paid (Time of payment)

Amol S Joglekar

Amol S Joglekar (Expert)
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08 August 2017 01. Yes, he can opt for composition provided he is NOT engaged in making any inter state outward supply of goods

02. When he sells the stock, he can charge 1 % GST on the same

Querist : Anonymous

Querist : Anonymous (Querist)

08 August 2017 Sir, its mean Stock held on 1 July from inter-state, no problem to choose composition Scheme. only dealer can not sale inter-state. and on such stock only 1% GST levy on the time of sale.

Amol S Joglekar

Amol S Joglekar (Expert)
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08 August 2017 On stock, you will be required to pay 5% on RCM + 1 % from sale side.

Querist : Anonymous

Querist : Anonymous (Querist)

08 August 2017 RCM when applicable, on the time of sale or any other time. any time limit to declare such stock held on 1st july (in which form)

Amol S Joglekar

Amol S Joglekar (Expert)
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08 August 2017 within 90 days, you have to declare STOCK

Querist : Anonymous

Querist : Anonymous (Querist)

08 August 2017 in which form, and please suggest when dealer pay GST on RCM .on the time of Sale or Lum-sum pay

Amol S Joglekar

Amol S Joglekar (Expert)
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08 August 2017 Legally speaking it is expected to pay lump sum....
TRAN 1

https://www.cbec.gov.in/resources//htdocs-cbec/gst/transition-rules-04062017.pdf

Querist : Anonymous

Querist : Anonymous (Querist)

08 August 2017 Sir, how much Credit will be avail by such dealer on RCM paid GST on Stock.

Amol S Joglekar

Amol S Joglekar (Expert)
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08 August 2017 full credit on RCM paid on stock

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