how to brought forward old stock

[chandan arora]

hello

sir, i am a retailer of paint and hardware and plywood goods, however on the date 30/6/17 i have stock of the value 30 lacs, and i am a tin number holder. i used to file vat returns, and all of my purchases was from ltd compnies ( asian paints, nippon paints) , or from the distibuters who are registerd under vat system. as now G.S.T arrived so according to my sale of last finacial year was 56 lacs, so i chosse composition scheme of G.S.T , as i read that now i only need to pay 1 % on my entire sale of this year. that is all clear.

what some advocates are saying that as i was a tin number holder thats why i have to pay some taxs on my old stock with rates accordingly .

here i want to know what will happen to my old stock, should i pay only 1% or there should be anything else . ?

[KASTURI SETHI]

If as on 30.6.17, you held stock pertaining to inter-state sale or stock from un registered dealer, that make you in-eligible for composition Scheme.

[DR.MARIAPPAN GOVINDARAJAN]

I endorse the views of Shri Kasthuri Sethi.

[Guest]

As per the composition rules, if your stock is out of inter state purchases, then you are not eligible for composition.
Else you can go for composition and all your credit in VAt returns shall lapse

[Kishan Barai]

A Composition dealer can purchase the stock via Inter State but he can not sell interstate , there is no restriction in purchase via Inter State for Composition dealer

AI Summary

Retailer Queries GST Impact on 30 Lakh Old Stock; Composition Scheme Eligibility Clarified, VAT Credits to Lapse A retailer of paint and hardware goods inquired about the tax implications on old stock valued at 30 lakhs under the new GST regime, having previously filed VAT returns. The retailer opted for the GST composition scheme, which requires paying 1% on total sales. However, there was confusion about whether additional taxes were due on old stock. Responses clarified that if the stock involved inter-state sales or purchases from unregistered dealers, the retailer would be ineligible for the composition scheme. Otherwise, they could proceed with the scheme, but VAT credits would lapse.