GST REGULAR TO COMPOSITION

One of My Client switch over from Regular Dealer to Composition Dealer.  He has Credit Ledger Balance.  How could he utilise this..

 

Replies (1)
Cannot Utilise it .
As per Section 18(4) of CGST Act , you are required to pay tax on tax on Stock (input) & Capital goods. GST can pay by debiting credit ledger or cash ledger.

As per Rule 44 need to file ITC 03 :
GST ITC-03 is a Form to be filed to pay an amount through the common portal, by way of debit in the electronic credit ledger or electronic cash ledger equivalent to credit availed in respect of:

· Inputs held in stock, and

· Inputs contained in semi-finished goods or finished goods held in stock, and

· Capital goods held in stock

by taxpayer who opts for composition scheme or where goods or services or both become wholly exempted.


Note : ITC 03 Can be file within 180 days from date of filing CMP-02 to opt for Composition scheme.

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