Normal dealer in dvat to composition dealer in gst

This query is : Resolved

rajeev kumar sharma (Querist)
Follow

19 June 2017 DEAR ALL,

TRANSITION FROM NORMAL DEALER IN DVAT TO COMPOSITION DEALER IN GST

When a taxpayer is shifting from a normal scheme to composition scheme, the taxpayer has to pay an amount which shall be equal to the credit of input tax in respect to those inputs which are held as stock on the immediately preceding date from the date of such switch over.

CAN THIS WILL BE INTERPRETED AS :-

we have to pay Input Tax on Closing stock held on 30.06.2017 upfront and there after transfer to composition scheme and pay GST Composition rate on same stock again.

Pls explain.

Regards

Rajeev K. Sharma

Suresh Mittal

Suresh Mittal (Expert)
Follow

19 June 2017 Yes, there are no transition provision for transfer directly into composition. You will have to first migrate and then opt for composition and Sec 18(4) shall be applicable for same. As far as payment of input tax is concerned, this is not actual payment, it is just surrender of ITC already claimed on purchases/ inward supply and if you have already utilised the same then only you will have to pay which otherwise also you were supposed to pay on supply.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

velichety.l.narasimharao

SHIBSANKAR DEY

deepak

Amit Yadav

Saumil Kapadia

Subscribe Now

Normal dealer in dvat to composition dealer in gst

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

GST CONSULTANT

CA Final

Senior Executive

Accountant

Manager- Finance and Compliance

GST CONSULTANCY