Faraz (Student) (236 Points)
13 July 2017Suppose a person was engaged in sale of goods (cotton cloth) exempt under VAT laws. Now he is migrating to GST and opt for composition. Is he liable to pay tax on reverse charge as specified under Rule 5(1)(c)?
Kaushik Deepak (KD)
(Officer Accountant)
(1136 Points)
Replied 14 July 2017
Faraz
(Student)
(236 Points)
Replied 14 July 2017
| Originally posted by : kaushik deepak | ||
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NO, HE IS LIABLE TO PAY TAX @ % RATE SPECIFIED ON COMPOSITION SCHEME, NOT UNDER RCM |
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Kindly read Rule 5(1)(c) of CGST Rules. A person opting for composition is required to pay tax on stock as on date of opting the scheme under reverse charge if purchased from unregistered dealer.
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