Inout credit

This query is : Resolved

Tara Jain (Querist)
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28 July 2017 1. If a traders who was not registered under VAT or other act now wants to be registered under GST as on 01.07.2017 will he get Input credit on the stock outstanding as on 30.06.2017.
2. Whether a Composition dealer under VAT, can avail Input Credit if he opts to be a normal dealer under GST.
3. What will be the position if a normal dealer under VAT opts for Composition under GST. Whether he will have to pay tax on the stock as on the date. If he is having any stock out of interstate purchase what will be the position.

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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28 July 2017 1. Yes
2.Yes
3. If having interstate goods in stock then can't opt for Composition as per Rule 5(1)(b).
If you are VAT dealer & opt for composition in GST then you have to pay tax on stock