Closing stock on compostion dealer
Ajnas (Student) (844 Points)
22 February 2021
In composition dealer accounts gst paid at time of purchase is part of inventory valuation?
8 Replies
CA Rashmi Gandhi
(Chartered Accountant)
(86495 Points)
Replied 22 February 2021
Yes, as you have not claimed ITC of such Gst it will be added in cost of purchase and also added while valuing closing stock.
CA. Sourav Sarkar
(Chartered Accountant )
(24588 Points)
Replied 22 February 2021
No gst paid is not part of inventory valuation
CA Rashmi Gandhi
(Chartered Accountant)
(86495 Points)
Replied 22 February 2021
It will be a part of closing stock.
CA. Sourav Sarkar
(Chartered Accountant )
(24588 Points)
Replied 22 February 2021
The Accounting Standard (AS) 2 “Valuation of Inventories” deals with “cost of inventories” and “cost of purchases”. ... Hence the input tax which is refundable, should not be included in the cost of purchases. GST, to the extent it is refundable, will not form part of the cost of the inventory.
CA Rashmi Gandhi
(Chartered Accountant)
(86495 Points)
Replied 22 February 2021
But as you know GST on purchase in case of Composition scheme is non refundable , hence will form part of cost of inventory
Ajnas
(Student)
(844 Points)
Replied 23 February 2021
If the firm adopted exclusive method for section 145A, then while including ITC Cost as a part of inventory valuation then is any problem?
CA Rashmi Gandhi
(Chartered Accountant)
(86495 Points)
Replied 23 February 2021
No problem at all, you can do so .
Ajnas
(Student)
(844 Points)
Replied 26 February 2021
In case of regular dealer itc ineligible or Unclaimed itc as a part of inventory valuation?
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