composition related.

THERE IS NO SPECIFIC SECTION OR RULE IN THIS REGARD, BUT TO UNDERSTAND THE SAME WE HAVE TO GO THROUGH SOME RULES & SECTIONS.

IN TERMS OF SECTION 10 (4) OF CGST ACT THE COMPOSIT DEALER IS NOT ALLOWED TO COLLECT TAX & NOT ALLOWED TO TAKE CREDIT ON INWARD SUPPLY.

IN TERMS OF SECTION 18(4) READ WITH RULE 44 OF CGST ACT, WHEN ANY TAXPAYER OPTS TO PAY TAX U/S 10 IS NEEDS TO REVERSE THE CREDIT ON STOCK & CAPITAL GOODS BY DEBITING CREDIT OR CASH LEDGER.

SO IN READING ABOVE CAN DRAW AN CONCLUSION , WHEN COMPOSITION TAXPAYER HAS NEITHER HAS CLAIM ITC NOR COLLECTED TAX FROM CUSTOMER HOW IS LIABLE TO PAY TAX ON STOCK.

NOTE : I MYSELF HAS SURRENDER THE GST OF COMPOSIT TAXPAYER & DECLARE THE STOCK & PORTAL NOT DEMAND FOR ANY TAX LIABILITY ON STOCK