Composition surrender gst registration

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One of my composition dealer wants to surrender gst registration due to threshold limit not reached where it is mandatory to deposit tax on balance stock ?
Replies (5)
Yes tax on stock balance should be paid before making cancellation application
No composition dealer are not required pay tax on closing stock left while surrendering GSTN.
Can anyone give me any section and rules reference.

Dear Ajay

As such it is not define or prescribed in section or rule, but one has to conclude himself on referring section & rule thereon.

1. As per section 10 of cgst act , the composition dealer is not allowed to collect GST from customer neither can claim any ITC on his inward supply.

2. In term of Rule 3A of cgst Act when any registered person opts to pay tax u/s 10 is required filing intimation in form CMP-02 & MADATORY REGUIRED TO FILE ITC-03 (Reversal of ITC) in accordance of Rule 44(4). so there is no ITC balance is left with composition dealer on his stock

3. as per rule 20 CGST Act any registered per who seeks cancellation of registration is required to provide detail of ITC in stock, capital goods & liable to pay gst on same. but the composition dealer when swifted from regular to composition scheme is required to reverse the ITC or who have Fresh opted for composition scheme is not allowed to claim any itc on his inward supply, hence not required to pay any gst on stock when he surrender his GST no.

Actually the GST is paid on Stock on which you have availed the ITC, So the composition dealer cant avail itc therefore not required to pay GST on stock

 

have u paid gst on stock Mr. Ajay in composition i have same query.

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