GST liability on Surrender of GST registration of composition dealer.

Whether GST is required to be paid on value of closing stock on surrender of GSTN of composition dealer and if yes on what rate?
Replies (2)

Not required as they have not availed ITC on purchase of such goods.

Sec29[5] Every registered person whose registration is cancelled shall pay an amount, by way of debit in the electronic credit ledger or electronic cash ledger, equivalent to the credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goodsheld in stock or capital goods or plant and machinery on the day immediately preceding the date of such cancellation or the output tax payable on such goods, whichever is higher, calculated in such manner as may be prescribed:


Can this can be presumed that ITC will be zero and output tax payable is 1% of Value of closing stock and this amount will be higher and we have to pay 1% of of value of closing stock as per sec 29(5) for composition dealer.

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