Composition Scheme & Stock-in-Hand

Composition Scheme & Stock-in-Hand

Hello,

I am a retailer dealing in fabrics as well as readymade garments, with fabrics accounting for nearly 70% of the business. Pre-GST I was registered under VAT and was paying the same on readymade garments.
Since before GST fabrics were not taxed, majority of my purchases and sales were tax free. I transitioned to GST under the regular scheme and have been filing my monthly returns.

I want to opt for Composition scheme from February 1st 2018. My query is regarding the details of stock that I have to upload on the GST portal.
Post GST I have made purchases and availed the ITC but I still have stock from the Pre-GST period. I have read that I am supposed to pay tax on the stock held by me on the day preceding the transition (In my case it would be stock held on 31st January 2018).

Is this correct or has it been amended?
And If it is, do I have to pay tax even on the pre-gst tax free stock that I still have with me? (All of my ITC in VAT was utilised.)

And I had one more query, If I opt from February 1st, any inputs as to how would I be going ahead with filing the return for the Jan-Feb-March quarter?

Any help would be appreciated. :)

Thank You

Asked 6 years ago in GST

Dear sir,

Any assesse who only deals in supply of goods can opt for this scheme that means this provision is not applicable for service providers.

There should not be any interstate supply of goods that means businesses having only intra state supply of goods are eligible.

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.

You can opt for composition scheme only at the beginning of the Year.