Interstate stocks in composition

No, I don't see any way. You have to sale your old stock before opting for composition.

No. You can't opt for composition scheme till you clear the inter state stocks.

It's not that u have to do this immediately.

You can register right now as a normal tax payer and then switch to composition later.

Switching from normal scheme to composition scheme, taxpayer shall be liable to pay an amount equal to the credit of input tax in respect of inputs held in stock on the day immediately preceding the date of such switch over. The balance of input tax credit after payment of such amount, if any lying in the credit ledger shall lapse.

No, you can not avail composition scheme, because your 2% CST purchases give loss to government

Yeah u understand your problem but unfortunately there is no option

Sir, may I know the source of this information?

PLEASE SIR, RECHECK IT...I AM RIGHT AND REFER....Ref.:Rule 5(1)(b) of the CGST Rule 2017

?CST purchased STOCK as on 30.06.2017 can not migrated for COMPOSITION SCHEME

?

Please find the Conditions and Restrictions for Composition Levy as follow :-

The person opting for the scheme must neither be a casual taxable person nor a non-resident taxable person. (Ref.:Rule 5(1)(a) of the CGST Rule 2017)

If migrating from existing scheme, the goods held by him in stock on the appointed date must not be purchased from a place outside his state. The goods should therefore not be classified as:

(a) Inter- state purchase

(b) Imported Goods

(c) Branch situated outside the State

(d) Agents or Principal situated outside the State

(Ref.:Rule 5(1)(b) of the CGST Rule 2017)

The goods held in stock by him should not have been purchased from an unregistered person and where purchased, he pays the tax under reverse charge.

(Ref: Rule 5(1)(c) of the CGST Rules, 2017)

Hello,

I did not even understand how is that even a problem, as to how are you not allowed to carry forward interstate purchases under Composition Scheme ?

Trust this clarifies your query.

Feel free to call / get back in case of further clarifications.

Thanking You.

Regards,

Rohit R Sharma

BCOM, ACA, LLB-GEN, CERT. FAFP

Hello,

The only option is to pay tax on it under RCM as if the goods were purchased from URD. But you loose out on the 2% paid on CST.

Regards,

Keerthiga Padmanabhan

M.Com., CA, LL.B

Regards,

Keerthiga Padmanabhan

M.Com., CA, LL.B