Reverse charge for new comp. dealer

CA Ashwani Agarwal (Practice) (3049 Points)

22 June 2017  
in the conditions for composition scheme it is written that... if a person opts for composition scheme he has to first pay reverse tax on goods bought by him from unregistered dealers...

So because all the cloth merchant have stock purchased from unregistered dealers... do they all have to pay reverse tax on their stock if they want to come into composition scheme?