Transition provision regarding composition scheme

This query is : Open

CA Vishal Airen (Querist)
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09 July 2017 what if any existing taxpayer utlized all his ITC in Vat & now he want to pay GST under composition levy ? is he required to pay amount equal to VAT on existing stock?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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09 July 2017 Yes he is required to pay amount equal to VAT on existing stock.

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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09 July 2017 You have to pay amount equal to VAT on existing stock & remaining credit will lapse Refer Sec 18(4) for clarification.

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CA Vishal Airen

CA Vishal Airen (Querist)
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09 July 2017 but sec.18 doesnot talks anything about transition provision and nothing contained in sec. 10 as well as under transition provision about this?

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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09 July 2017 Read Sec 18(4) of CGST Act again clearly.

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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09 July 2017 According to Sec 18(4) Where any registered person who has availed of input tax credit opts to pay tax
under section 10 or, where the goods or services or both supplied by him become wholly
exempt, he shall pay an amount, by way of debit in the electronic credit ledger or electronic
cash ledger, equivalent to the credit of input tax in respect of inputs held in stock and inputs
contained in semi-finished or finished goods held in stock and on capital goods, reduced by
such percentage points as may be prescribed, on the day immediately preceding the date of
exercising of such option or, as the case may be, the date of such exemption:
Provided that after payment of such amount, the balance of input tax credit, if any,
lying in his electronic credit ledger shall lapse.

CA Vishal Airen

CA Vishal Airen (Querist)
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09 July 2017 Thank u madam for your reply...

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CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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09 July 2017 Welcome........

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CA Vishal Airen

CA Vishal Airen (Querist)
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09 July 2017 madam i have one more query about rates on handicraft products which r made up of wood/marble/other materials partially by hand partially by machine or wholly by hand or wholly by machine..

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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09 July 2017 Give list of all products.

CA Vishal Airen

CA Vishal Airen (Querist)
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09 July 2017 madam there r many items

CA Vishal Airen

CA Vishal Airen (Querist)
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09 July 2017 like gods idol made up of marbles or metals

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CA Vishal Airen

CA Vishal Airen (Querist)
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09 July 2017 pooja thali,chopras of marble or wood other home decoratives of wood,marbles & other materials

CA Vishal Airen

CA Vishal Airen (Querist)
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09 July 2017 would applicable rates on material of product will also applicable on product?

CA Vishal Airen

CA Vishal Airen (Querist)
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09 July 2017 i had contacted GST helpline there they told that rates on handicrafts has not been defined yet and it will not be out of scope of GST so charge 18% standard rate.. could i do so ?

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CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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09 July 2017 Yes you can do so as handicraft products are under consideration. Until it is finalise charge @18%

CA Vishal Airen

CA Vishal Airen (Querist)
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09 July 2017 but madam my brother is selling through E commerce platform so they r asking for HSN code.. is there any HSN code for standard rate?

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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09 July 2017 HSN Code available on www.howtoexportimport.com

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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