08 February 2020
If we cancel registration of Composition Taxable Person in GST, then do we need to pay 1% on stock lying with him on the date of cancellation? Please answer with and reasons and reference of relevant section or rules.
09 February 2020
Yes , you need to pay 1 % on stock lying with you. Sec 29(5) of CGST Act - Every registered person shall pay an amount equivalent to credit of ITC in stock OR THE OUTPUT TAX PAYABLE ON SUCH GOOD , whichever is higher . In case of composition , ITC will not be there hence output tax ie 1% , need to be paid .
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