Composite dealer have stock as on 01/07/2017

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if dealer have opt composition scheme .

he have stock of ₹ 10 lakh(vat paid) as on appointed day of gst i.e is 01.07.2017. Does he have to pay gst on his closing stock of rs. 10 lakh to opt for composition scheme.

will he get ITC on his stock

AI Summary

Dealer in GST Composition Scheme Ineligible for Input Tax Credit on Pre-July 2017 Stock; Follow Procedures for Goods Returns A dealer opting for the GST composition scheme with stock valued at 10 lakh as of July 1, 2017, is ineligible for Input Tax Credit (ITC) on this stock. Several participants agree that no GST is payable on the old stock if proper VAT invoices are available, but ITC cannot be claimed. Under the composition scheme, no tax is imposed on sales, and thus, the dealer cannot carry forward the closing balance or claim ITC on purchases. Additionally, goods returned that were sold before June 30, 2017, should follow specific GST procedures for refunds or tax adjustments.