Sale of goods on which input tax is already claimed.

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shivam aggarwal

Student CA IPC / IPCC

23 Points Posted on 03 August 2017

On 30th June 2017, I am holding stock. On that stock, I have claimed input tax credit which was fully adjusted with the outstanding output tax liability on that day. So, now I have no impending VAT tax liability.

I have migrated under GST.

What are the provisions under in GST Act for selling this type of stock?

Will I have to pay tax on the stock held..? If yes, how can I pay the required tax. Is it through Electronic Cash Ledger or Electronic Credit Ledger or any other medium.
Can I opt for composition scheme u/s 10?

Or is there any other provision.

Replies (3)

Shashikant Varshney

Chartered Accountant

605 Points Posted on 03 August 2017

1. You will pay the tax when you sold the particular Goods.

2. If you want to choose Composition Scheme, you need to reverse the credit or pay the tax.

CMA Poornima Madhava

CMA

9106 Points Posted on 03 August 2017

As I understand, since you have already availed input tax credit (under earlier statutory provisions), the same cannot be claimed again under GST. For sale of such goods, you will have to charge GST at the rates applicable and pay tax using Electronic Cash Ledger. However, you may adjust the same against Electronic Credit Ledger too provided you have made purchases during GST period, for which credit is admissible under GST.