Opening stock under Composition Scheme

[Kavita Sharma]

Under composition rules, a dealer can not opt for composition scheme if his stock on the appointed day contains 2% CST Stock.

My query is this, whether there is any way that he can opt for Composition scheme by paying the difference tax as in the case of stock purchased from unregistered dealer?

Regards

Kavita Sharma

AI Summary

Composition scheme eligibility limited where opening stock includes inter state purchases or imports, preventing immediate option.
Opening stock purchased in the course of inter state trade, imported, or received from an out of state branch or agent disqualifies a person from exercising the option to pay tax under the Composition Scheme; no provision exists to cure such ineligible opening stock by paying inter state tax akin to the mechanism for purchases from unregistered dealers, and prospective eligibility requires ensuring compliant opening stock and filing the prescribed option application before the financial year.