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Closing stock valuation for gst rollout

durgaprasad (accounts executive) (225 Points)

22 May 2017

Impact of GST rollout on closing stock value, Every trader keeps some closing stock in the business. When the GST rollout on July 1st onwards. 1) What are steps taken by traders for holding of closing stock (2) If the closing stock valuation on 31/3/2017 or 30/6/2017 for getting of input tax credit. (3) We have a merge of excise duty, cst , vat paid stock in the firm, how to segratation of the stock for getting input tax (4) Can we getting the input tax of credit on closing stock (excise duty/cst/vat tax) Please clarify my queries on the points.

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22 Replies

CA NEHA RAMPURIA (Taxation Consultant) (1823 Points)
Replied 22 May 2017

IF you are registered under vat laws, the amount of vat credit brought fwd by you in your return would be available as itc in gst laws pertaining to fulfillment of certain conditions. 2. now since you are a trader and you are not registered as manufacturer you cant take the credit of excise duty paid by you. You are provided with 2 options option 1: applies when you have invoices or documents evidencing payment of excise duty by you. On fulfillment of certain conditions youll be getting the input tax credit under gst. option 2 : applies when you don't have documents or invoices evidencing payment of excise duty. here you would be getting ITC equal to 40% of CGST applicable on supply of such goods( held in stock) after appointed date and shall be credited after CGST payable on supply of such goods have been paid. however this itc of 40 % shall be available on fulfillment of certain conditions. for more queries or clarifications you can mail me at neharampuria @ gmail.com

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HIREN (Chartered Accountant) (320 Points)
Replied 22 May 2017

Input Credit on VAT, CST, Excise, ST etc will be available on closing stock based on documents.
Ex:
To claim ITC of Excise on closing stock you must have excisable invoice in place showing excise paid.

CA NEHA RAMPURIA (Taxation Consultant) (1823 Points)
Replied 22 May 2017

YES .( WITH FULFILLMENT OF CERTAIN CONDITIONS AS EARLIER SAID) AND IF YOU DONT HAVE THE INVOICE YOU HAVE OPTION 2 .

HIREN (Chartered Accountant) (320 Points)
Replied 22 May 2017

but if you opt for option 2 then you have to pass on complete benefit to end consumer by making suitable changes in selling price, isn't it Nehaa?

durgaprasad (accounts executive) (225 Points)
Replied 23 May 2017

Thank you for prompt response of all,

I have document of invoices which were paid excise duty, can we calculated the excisable invoices upto 31/3/17 or 30/6/17 for getting the input of excise duty and also we have huge unsold stock of vat tax paid invoices, but there is no Net credit balance of input, Can we claim that invoices for excise duties. That invoices not contain of excise duty only on vat tax, but the supplier has paid the excise duty on the particular product in that invoice and what are the conditions fulfilment for getting of input tax

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Akash Jain (2 Points)
Replied 10 June 2017

hi i have following query

i am a manufacture (ssi ) i am not registered under excise but registered under vat. my goods were exmepted from both excise and vat under the old regime but now their would be 12 % tax(under gst) on goods i manufacture. My main ingredient is iron and steel on which i was paying both excise and vat (though i dont have bills of excise duty as i used to purchase from dealers ).

i want to know how will i get input tax credit on closing stock on 30.6.17. how much i can claim and what would be the procedure.

please guide me.

HIREN (Chartered Accountant) (320 Points)
Replied 10 June 2017

Since you are manufacturer you will be allowed to take credit based on documents only.

Jeelan Parvez (2 Points)
Replied 12 June 2017

i am sub contractor i have taken project of 120000(twelve lakhs) on 03-04-2017 and due labour issue it will take approx still a month to complete and party is telling as per ur time ur give the delivery but if the bill comes under gst we are not responsible

Mukesh Jha (2 Points)
Replied 14 June 2017

Hi Neha,

Can you suggest me that what will be the impact on filing the VAT & CST return for the month of June when the GST will be implemented

Mukesh

CA NEHA RAMPURIA (Taxation Consultant) (1823 Points)
Replied 14 June 2017

The return filed for the month of june will be of crucial because the credit of your vat return being brought fwd would be provided to you in gst in your e credit ledger. so one must file the last return with due care. try to take input tax credit where there is doubtful situation, so as to avoid future loss., preserve the supporting documents too.

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Ravi (2 Points)
Replied 21 June 2017

i am a trader of textile cloth which was exemt under current vat prov....but under GST it will be taxable @ 5%....my question is what will be the tax implication on my closing stock as on 30th june2017