STOCK OF LUMPSUM PURCHASE GOODS
This query is : Resolved
12 September 2017
HOW TO SHOWN CLOSING STOCK OF PURCHASE FROM LUMPSUM DEALER UNDER VAT AS ON 30.6.17...
WHICH FORM SHOULD BE USED TO TAKE VAT CREDIT AND DEEMED CREDIT.. ?
THANKS IN ADVANCE..
25 July 2025
Got it — you bought goods from a lumpsum (or composite) dealer under VAT, and now want to show your **closing stock as on 30.6.17** and claim VAT credit or deemed credit.
---
### Key points:
1. **Purchases from Lumpsum/Composite Dealer:**
* Under VAT law, composite or lumpsum dealers don’t charge VAT on their invoices.
* So, **you generally cannot claim Input Tax Credit (ITC)** on purchases from such dealers because no VAT is paid separately.
2. **Closing Stock as on 30.6.2017:**
* When migrating from VAT to GST (which happened around July 2017), your closing stock as on the appointed date (30.6.2017) is important.
* You need to declare your closing stock value and claim **deemed ITC** on it while filing your GST returns.
3. **Form to use:**
* Under VAT, there was no specific form to claim ITC for stock from composite dealers because ITC is not available.
* But for **GST migration**, you declare your closing stock (purchased from any dealer, including composite dealers) in **Form GST TRAN-1** (the transition form).
* You claim **deemed ITC on the stock held** on 30.06.2017 through TRAN-1.
4. **But since the purchase was from a lumpsum dealer (no VAT paid), there is no VAT credit component to claim under VAT.**
* In GST TRAN-1, you can still declare the stock value and claim deemed ITC, but the ITC is restricted for stock on which VAT was paid.
* For stock bought from a composite dealer (no VAT paid), no ITC is allowed on that stock under GST as well.
---
### Summary:
| Situation | VAT Credit | GST Credit on migration (deemed ITC) |
| -------------------------------- | ----------- | ------------------------------------ |
| Purchase from Regular VAT dealer | Allowed | Allowed (via TRAN-1) |
| Purchase from Lumpsum dealer | Not allowed | Not allowed (no VAT paid, no ITC) |
---
### What you should do:
* **Declare your closing stock value as is.**
* **Do not claim VAT credit on stock purchased from lumpsum dealer, since no VAT was paid.**
* For GST migration, declare closing stock in **Form GST TRAN-1**.
* Ensure your VAT returns and records properly show these facts.
---
If you want, I can help you prepare a checklist or stepwise guide for the GST transition including closing stock declaration. Let me know!
---
### Key points:
1. **Purchases from Lumpsum/Composite Dealer:**
* Under VAT law, composite or lumpsum dealers don’t charge VAT on their invoices.
* So, **you generally cannot claim Input Tax Credit (ITC)** on purchases from such dealers because no VAT is paid separately.
2. **Closing Stock as on 30.6.2017:**
* When migrating from VAT to GST (which happened around July 2017), your closing stock as on the appointed date (30.6.2017) is important.
* You need to declare your closing stock value and claim **deemed ITC** on it while filing your GST returns.
3. **Form to use:**
* Under VAT, there was no specific form to claim ITC for stock from composite dealers because ITC is not available.
* But for **GST migration**, you declare your closing stock (purchased from any dealer, including composite dealers) in **Form GST TRAN-1** (the transition form).
* You claim **deemed ITC on the stock held** on 30.06.2017 through TRAN-1.
4. **But since the purchase was from a lumpsum dealer (no VAT paid), there is no VAT credit component to claim under VAT.**
* In GST TRAN-1, you can still declare the stock value and claim deemed ITC, but the ITC is restricted for stock on which VAT was paid.
* For stock bought from a composite dealer (no VAT paid), no ITC is allowed on that stock under GST as well.
---
### Summary:
| Situation | VAT Credit | GST Credit on migration (deemed ITC) |
| -------------------------------- | ----------- | ------------------------------------ |
| Purchase from Regular VAT dealer | Allowed | Allowed (via TRAN-1) |
| Purchase from Lumpsum dealer | Not allowed | Not allowed (no VAT paid, no ITC) |
---
### What you should do:
* **Declare your closing stock value as is.**
* **Do not claim VAT credit on stock purchased from lumpsum dealer, since no VAT was paid.**
* For GST migration, declare closing stock in **Form GST TRAN-1**.
* Ensure your VAT returns and records properly show these facts.
---
If you want, I can help you prepare a checklist or stepwise guide for the GST transition including closing stock declaration. Let me know!
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Section 270A penalty
- GST Registration Application -Rejected
- GSTR 9C- Table 9
- International transfer pricing- -> father entity vs son entity ->WHERE NO mutual say in management
- Tax liability on gift amount given to blood relation
- Gst registration rule 14A
- Query on solved queries
- Reimbursement of expense- GST applicable or not
- When was the effective CA partnership deed? Can I use old FRN until new FRN alloted by ICAI?
- Form 104 stamp paper deed
- PLACE OF SUPPLY FOR COMMISSION AGENT
- Transport service POS
- E INVOICE, E-WAY, INVOICE
- GST RATE ON CONSTRUCTION BRICKS ?
- To Whom the Invoice should be Raise to
- E stamp paper purchase
- Problem in filing Returns for International workers in EPFO
- Clarification for reversal of IGST on transfer of duty-free imported goods from EOU to DTA unit
- EXCESS CREDIT REALTED GST REVERSAL
- Export invoice not reported
Trending Online Classes
-
Live Course on GSTR 9 & 9C for FY 24-25(Detailed discussions, FAQ, Case studies and Live demo of GSTR 9/9C on GST Portal)
Industry Expert16 November 2025
CAclubindia
