GST change effect on composition GST payers

[Pragya]

I run a pharmacy, and I pay the GST under the composition scheme .

From 22nd sept I have to sell goods on the lesser rate . What will happen to the existing stock. Will I suffer loss on sell of the previously purchased goods, as I will not get the benefit of ITC. Please answer my query.

Thanks

AI Summary

Composition taxpayers cannot claim input tax credit; GST rate reduction applies to outward supplies including existing stock from effective date Registered composition taxpayers cannot claim input tax credit, so a GST rate reduction taking effect on a specified date simply changes the tax charged on outward supplies from that date, including sales of existing stock. There is no requirement to reverse ITC or incur additional GST liability on earlier purchases because ITC was never available under the composition scheme; existing inventory is sold at the new lower rate and tax is discharged accordingly.