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Liability of gst on stock upon cancellation of registrstion

27 July 2020

Please explain the liability of GST on cancellation of registration by a Composit dealer on the stock he possess, and at what rate?

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4 Replies

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 27 July 2020

According to me there is no tax liability regarding closing stock on composition dealer on cancellation of Registration.
Because there is not ITC credit taken by composition dealer on that stock as they require to pay GST at prescribed rate on turnover.

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Vijayprakash P (1313 Points)
Replied 27 July 2020

As per GST provisions, Regular as well as Composition dealer both are required to pAy GST on closing stock at the time of cancellation of registration.