CA Bijay Shrestha (Never Give up....No matter what....) (858 Points)
13 July 2017Dear friends,
A Un-registered dealer under Old laws and GST Law wants to opt Composition Scheme in GST. He has some stock from Registered dealer (VAT charged) and Un-registered dealer.
Now if he opts for Composition levy,
(1) Is he also required to file any Transition form under Transition Rule?
(2) If he pays GST on URD Opening stock on RCM basis, where and in which FORM is he required to show that stock details and Tax paid details?
Please kindly suggest.
Muthukkumaran
(Consultant)
(204 Points)
Replied 13 July 2017
1.Composition dealer cannot take credit of input taxes.So no filing required under transition rules.
2.GST applicable from 1st July only.So eventhough RCM applicable ,it doesnt apply on opening stock.Purchase from u n registered dealer after July 1st will attract RCM and a composition dealer is required to file quaterly returns.
Jayesh Doshi
(Self)
(177 Points)
Replied 13 July 2017
Muthukkumaran
(Consultant)
(204 Points)
Replied 14 July 2017
Cannot opt for composition scheme as previous year turnover exceeds RS.75 lacks.Normal registartion required,pay gst on sale of such closing stock.
CA Bijay Shrestha
(Never Give up....No matter what....)
(858 Points)
Replied 15 July 2017
| Originally posted by : Muthukkumaran | ||
 |
1.Composition dealer cannot take credit of input taxes.So no filing required under transition rules. 2.GST applicable from 1st July only.So eventhough RCM applicable ,it doesnt apply on opening stock.Purchase from u n registered dealer after July 1st will attract RCM and a composition dealer is required to file quaterly returns. |
 |
As per Composition Rules - Rule 5 (1) The person exercising the option to pay tax under section 10 shall comply with the following conditions, namely:-
(c) the goods held in stock by him have not been purchased from an unregistered supplier and where purchased, he pays the tax under sub-section (4) of section 9.
It means he has to pay tax on Stock (if any from URD) available immediately before opting for Compopsition Scheme on RCM basis.
If he pays, where to show these details?
Please explain
Jayesh Doshi
(Self)
(177 Points)
Replied 15 July 2017
Jayesh Doshi
(Self)
(177 Points)
Replied 15 July 2017
CA Bijay Shrestha
(Never Give up....No matter what....)
(858 Points)
Replied 15 July 2017
| Originally posted by : Jayesh Doshi | ||
|
The dealer has to file Form CMP-3 within 60 days showing details of all RD & URD purchases. In this form he can show the payment details under RCM on urd purchases. | |
But CMP-03 is only for persons registered under the Existing Acts and migrating to Composition Scheme under GST.
I am talking about persons not regsitered under the Old Acts.
CAclubindia
