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Gst collection on closing stock held on 30/06/2017

CA S Praveen Kumar Reddy (Chartered Accountant) (2195 Points)

06 June 2017

Dear Sir, If retailer having Closing stock on 30/06/2017, then from 01/07/2017 how much he can collect GST when he sold that stock. Presently stock related to Cosmetics. If we charge GST it's coming total cost morethan MRP. How can i proceed.

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VIPIN NAIR (CISA) (117 Points)
Replied 06 June 2017

Available CENVAT Credit in GST

Closing Balance of CENVAT Credit as on appointed date (say 30th June 17)

The amount of credit which is carried forward in return for immediately preceding period (say 30th June 2017), same can be entered in GST electronic credit ledger which can be used for paying output tax under GST.The above credit shall not be available for persons opting for composition scheme.Provided that the taxable person shall not be allowed to take credit unless the said amount was admissible as CENVAT credit under the earlier law and is also admissible as input tax credit under the GST Act.The amount taken as credit shall be recovered as an arrear of tax under this Act from the taxable person if the said amount is found to be recoverable as a result of any proceeding instituted, whether before or after the (say 30th June) appointed day, against such person under the earlier law.CENVAT Credit can be related to inputs, input services or capital goods. Balance shown in the return furnished under current tax regime will be opening balance in electronic tax ledger under GST to be known as CGST or SGST

Available CENVAT Credit on Capital Goods in GST Regime

Closing Balance of CENVAT Credit as on appointed date (say 30th June 17)

A registered taxable person shall be entitled to take, in his electronic credit ledger, credit of the unavailed CENVAT credit in respect of capital goods, not carried forward in a return, furnished under the earlier law by him, for the period ending with the day immediately preceding the appointed day.The expression “unavailed cenvat credit” means the amount that remains after subtracting the amount of cenvat credit already availed in respect of capital goods by the taxable person under the earlier law.The condition is that credit must be eligible under GST law as well.If excess credit carried forward, it will be recovered under GST

Available CENVAT Credit on Inventory in GST Regime

Credit of eligible duties & taxes will be allowed in respect of inputs held in stock as semi-finished goods or finished goods on the appointed day (say 30th June 17)

1. Persons eligible for credit:

a) Who was not liable to registration under earlier law but now is required under GST.b) Manufacturer of exempted goods or provider of exempted services which now became taxable.c) Works contract service provider.d) First stage or second stage dealer

2. Conditions for credit:

a) Inputs are used for making taxable suppliesb) Taxable person passes the benefit of credit to recipientc) Taxable person is eligible for input tax creditd) Invoice should be issued & should not be more than 12 months earliere) No abatement is taken

3. A registered person, who has opted for composition scheme under earlier law can take credit of inputs held in stock semi-finished goods or finished goods, if he doesn’t opt for composition scheme in GST law and other conditions are satisfied.

GST Available CENVAT Credit on Return of Goods

Duty/tax paid goods returned to the place of business on or after the appointed day (say 30th June 17)

Where any goods which have been removed under earlier law within 6 months prior to appointed day and duty has been paid thereon, are returned to place of business within 6 months from appointed day, the registered taxable person will be eligible for refund of duty paid under earlier law.If the said goods are returned by registered taxable person, it is deemed to be supply.If any inputs have been removed for job work and is returned within 6 months (can be extended further by 2 months) from appointed day, no tax shall be payable on such inputs.If not returned within given time, tax credits will be recovered as per GST law

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CA S Praveen Kumar Reddy (Chartered Accountant) (2195 Points)
Replied 06 June 2017

sir, my point is how GST I should charge from 1st July on stock

1 Like

VIPIN NAIR (CISA) (117 Points)
Replied 06 June 2017

You need to need to raise GST

1 Like

VIPIN NAIR (CISA) (117 Points)
Replied 06 June 2017

You need to raise GST Invoice

VIPIN NAIR (CISA) (117 Points)
Replied 06 June 2017

You can take eligible VAT credit for OUTPUT GST laiblity

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CA S Praveen Kumar Reddy (Chartered Accountant) (2195 Points)
Replied 06 June 2017

But customer will ask why you are charging more than MRP. My fame will spoil if I sold more than MRP. I am retailer.

VIPIN NAIR (CISA) (117 Points)
Replied 07 June 2017

GST Tax will be levied from 1st July 2017 and compulsory need to raise GST invoice :

Example : You Brought Goods worth (Rs 1000 + 12% Exise + 12% EXCISE DUTY