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composition related.

28 July 2019

I am currently registered as a composition dealer nd want to surrender the registration because of 40 lac threshold.
whether I m required to pay tax on closing stock?
whether I m required to file return of apr-june quarter?

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6 Replies

Pankaj Rawat (GST Practitioner) (55057 Points)
Replied 28 July 2019

Yes you are required to file Return for 1st Qtr. but not required to pay Tax on Stock

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Akshit Bhandari (6 Points)
Replied 28 July 2019

legal backing for not required to pay tax if any.
please provide.

Pankaj Rawat (GST Practitioner) (55057 Points)
Replied 28 July 2019

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

NAGESWARAN (ACCOUNTANT) (834 Points)
Replied 28 July 2019

Hello Pankaj sir..
Want to change composition dealer to Regular.
What is procedure. apply for modification or any other procedure. Same GSTIN or new number allotted. Pls explain sir

Thanks

Akshit Bhandari (6 Points)
Replied 01 August 2019

does unregistered dealer can purchase interstate having his turnover equals to 4000000

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Pankaj Rawat (GST Practitioner) (55057 Points)
Replied 01 August 2019

Dear Nageswara File CMP04 online on portal . ( You .can find it under menu "Registration") Same GSTN will get transferred to Regular , no need to apply for New. GSTN . YIU CAN ALSO CLAIM ITC on you stock by filing ITC 01 Online with in 30days from the date of withdrawal of composition scheme.