composition scheme

a dealer having purchased interstate means the dealer was a VAT dealer. A VAT dealer can opt for composition scheme. but he shall not have any stocks on the appointed day which was purchased interstate. If such dealer has nil stocks of interstate purchase he can opt for composition scheme.

u have an option firstly sale all the stock of interstate purchase

and thn go for composition

i want to know the reason behind this.

Gst is consumption based tax. but if u have opening stock thn that means u paid tax to the seller state. and if u choose compostion thn u cant take input credit of this.

in the regular case u can take credit of it but in composition if u have opening thn u cant take the credit and the main motive of gst consumption based not fullfilled.. hope now u got ur reason behind this.

IN COMPOSTION SCHEME A DEALER CAN BUY PRODUCTS TO SELL FROM OTHER STATE

A dealer trading in textiles which was tax free in vat regime having turnover more than 75 lakh during previous year i.e. 2016-17. Now he is applying for registration under GST, can he opt for composition as a new dealer ?
If yes then any liability on closing stock of textiles ?
Considering new registration whether condition of preceeding year turnover is applicable to such dealer ?
Please reply & clarify the issue

he cannot opt for composition scheme as his previous year turnover is more that 75 Lakhs

he cannot opt for composition scheme as his previous year turnover is more than 75 Lakhs