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composition scheme

Vaishali Khatri (14 Points)

11 July 2017

why composition scheme can't be opted by dealer having goods in stock already purchased interstate?

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10 Replies

Mahendra Dugar (205 Points)
Replied 11 July 2017

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.

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Sahil Jain (22 Points)
Replied 12 July 2017

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

Sahil Jain (22 Points)
Replied 12 July 2017

and thn go for composition

Vaishali Khatri (14 Points)
Replied 12 July 2017

i want to know the reason behind this.

Sahil Jain (22 Points)
Replied 12 July 2017

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.

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Sahil Jain (22 Points)
Replied 12 July 2017

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.

Balaji Balaji (5 Points)
Replied 12 July 2017

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

Jayesh Doshi (Self) (177 Points)
Replied 13 July 2017

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