RCM on closing stock of composition dealer
This query is : Resolved
13 July 2017
Existing composition dealer of dvat want to opt gst composition scheme. Do he has to pay gst on the stock lying with him on 30th June which is purchased from unregistered vat dealers?? I am confused as rule 3(1)(b) says "purchased from unregistered dealers" and one cannot register itself under gst before 1st July......
13 July 2017
He need not pay gst on the stock lying with him on 30th June which is purchased from unregistered vat dealers. Only for future purchases it is applicable.
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13 July 2017
thanks for clarifying........one more thing....if one is selling goods which were exempted under vat (eg. sarees), can he opts composition scheme? replying to similar question cbec Twitter handle said that he can not opt but they did not explain why...
13 July 2017
GST provisions does not bar opting composition scheme for such traders.
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13 July 2017
sir about my earlier query.....I am getting different views from than yours from other expert...they are saying I have to pay gst on RCM basis on closing stock purchased from unregistered vat dealers (replying to same question taxmann expert in his facebook live program said that I have to pay gst on RCM otherwise I will not be allowed composition scheme)......can you please explain
13 July 2017
can you please explain how you come to the conclusion to your answer...I am worry as it will impose huge liability on my father's business.
13 July 2017
RCM applicable only when purchase from GST unregistered dealers. I have not seen any such provisions. How GST payable under RCM for purchase under VAT regime.
13 July 2017
sir rule 5(1)(c) of cgst rules....
13 July 2017
(c) the goods held in stock by him have not been purchased from an unregistered
supplier and where purchased, he pays the tax under sub-section (4) of section 9;
(94) “registered person” means a person who is registered under section 25 but
does not include a person having a Unique Identity Number;
The quoted rules talks about only unregistered person under GST not under erstwhile VAT.
supplier and where purchased, he pays the tax under sub-section (4) of section 9;
(94) “registered person” means a person who is registered under section 25 but
does not include a person having a Unique Identity Number;
The quoted rules talks about only unregistered person under GST not under erstwhile VAT.
13 July 2017
thank yo for further clarifying...i have the same opinion but many experts are saying something else, whcih confused me that might be i am not interpreting it correctly.....thanks again
16 July 2017
I guess we both are wrong......after seeing form cmp - 03, it is clear that we have to pay GST on goods lying as on 1st july, which are purchased from unregistered dealers.
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