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.
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.
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