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Taking registration after crossing threshold limit.

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Only Fun Time

22 Points Posted on 14 June 2021

After taking registration what would i have to do with the stocks which i purchased before taking registration.
since i already paid tax on those product do i have to pay tax again.
please clarify this to me.

Replies (5)

Quick Summary

If your business turnover has recently crossed the GST registration threshold, you might be wondering about the stock purchased before you registered. You can claim Input Tax Credit (ITC) on this existing inventory. To do this, you'll need to file Form ITC-01, provided your GSTIN was mentioned on the original purchase invoices.

CA Altamush Zafar

GST Consultant

15986 Points Posted on 14 June 2021

If you apply registration in time you will be able to claim itc on them

CMA Poornima Madhava

CMA

13117 Points Posted on 14 June 2021

You would have paid tax to the vendor at the time of purchase, which in your case is before registration. ITC on purchase can be claimed if your GSTIN is mentioned on the purchase invoice.

Why and whom do you have to pay tax again on such inventory?

Only Fun Time

22 Points Posted on 14 June 2021

But as i was doing business without gstin as my turnover was below threshold.But now my turnover crossed threshold and i have to take Gstin.so in this case what would happen to the existing inventory of my shop as i purchased these before taking GSTIN.