Cenvat credit on unsold stock

ITC / Input 253 views 3 replies

CA Dinesh

chartered accountant

144 Points Joined January 2011

Dear All,

I will try to explain my query through an example.

Person A (an individual) not registered in GST till 15.03.2018 due to his turnover does not exceeds Rs. 20 lacs. But on 16.03.2018, he decides to opt for voluentry registration and also get the same on 20.03.2018. Now please answer the following questions:-

1. Since he have to file GSTR 3B and GSTR 1 for March 2018, Will he show all purchases and sales from 01.03.2018 to 20.03.2018 in GST return.

2. How he will claim the cenvat credit of unsold stock as on 20.03.2018. are TRAN 1 or 2 applicable.

Replies (3)

Divakar

Student CA Final

11857 Points Joined May 2015

File ITC 03 stock statement as on application date... And claim ur gst paid on ur stock.... No tran 1 required.... Trans form is only for existing dealer... Means who registered in earlier law

CA Dinesh

chartered accountant

144 Points Joined January 2011

Dear Divakar

As per google search:-

"Who needs to file GST ITC-03?

Form GST ITC-03 is to be filed by taxpayer who has availed input tax credit (ITC) and

· Who opts for composition scheme or

· Where goods or services or both supplied by him become wholly exempted"

But this is neither the case of composition scheme nor the subjected goods have become exepted. This is a case where an unregistered dealer has unsold goods in stock and wants to get registered and he wants to claim the cenvat on unsold stock. Please provide the procedure for the same.