Closing stock on compostion dealer
In composition dealer accounts gst paid at time of purchase is part of inventory valuation?
Replies (8)
Quick Summary
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.
No gst paid is not part of inventory valuation
It will be a part of closing stock.
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.
But as you know GST on purchase in case of Composition scheme is non refundable , hence will form part of cost of inventory
If the firm adopted exclusive method for section 145A, then while including ITC Cost as a part of inventory valuation then is any problem?
No problem at all, you can do so .
In case of regular dealer itc ineligible or Unclaimed itc as a part of inventory valuation?
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