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Closing stock in gst for compostion scheme

deep1976 (propreitor) (266 Points)

07 May 2017

sir

pls guide what one has to do in compostion scheme regarding closing stock,if one will enter in gst like what extra tax or what will be the nature or what will happen in closing stock,have attached some news from newspaper,pls guide???

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6 Replies

Studentsca (CA Practice ) (3577 Points)
Replied 07 May 2017

If you opt for composition scheme in GST then no Input Tax Credit will be available in respect of goods in stock. You will have to pay tax on turnover at the rate of 1%. You will not be able to charge GST while selling the goods.

Harshad S Gholap (Auditor) (116 Points)
Replied 07 May 2017

Mr deep we suggest you to first workout your closing stock and amount of existing tax involved. then accordingly choose which procedure suitable/benefit to your business i.e. go for composition scheme or to choose regular GST tax payment.

deep1976 (propreitor) (266 Points)
Replied 08 May 2017

sir

my point is that presently i am in vat composition scheme with vat paid goods and purchases made in within state,my point is that what about the stock left out do i have to pay more tax on closing stock as there will be a change in tax rate on my goods???pls explain

Studentsca (CA Practice ) (3577 Points)
Replied 08 May 2017

In your case it would be as follows You would have to file a Stock Statement containing details of Closing Stock held on the date on which GST comes into effect in Form CMP-03. Further you would be required to pay tax on goods held in stock which have been purchased from Unregistered Persons under the reverse charge mechanism. In case of goods where VAT has already been paid no need to pay more tax.