Moving from composition scheme to regular dealer

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This query is : Resolved

Dixhita (Querist)

04 May 2018 Dear all,

We are into Food and beverages business and as its given in GST that one in F&B Business can apply for Composition scheme resulting us to pay GST @5%, but no if we voluntarily want to switch over to regular dealer, then what would be the procedure for it and what would be the consequences with regards to unclaimed Input Tax Credits for purchase of raw material for food and other expenses incurred?

Any help would be great,

Thanks in Advance

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

04 May 2018 See the link to switch over to regular dealer

https://www.youtube.com/watch?v=YqLkP9JzWog

Regular scheme also 5% GST applicable no ITC. Hence you can't claim ITC on stock held.

Dixhita

Dixhita (Querist)

04 May 2018 Not on the Stock held but the general purchases we do and expenses we incur in day to day business

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

04 May 2018 ITC can't be claimed for any of the above expenses if out put tax is 5% GST.

Dixhita

Dixhita (Querist)

04 May 2018 Mns it cannot be claimed even if we're in regular scheme and not in composition scheme?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

04 May 2018 If you are paying 12% GST ITC can be claimed.