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-registered pharmacies: reduced GST rate effective 22 September lowers tax on sales; no ITC reversal or extra liability A composition-registered pharmacy cannot claim input tax credit, so a reduced GST rate effective 22 September will only change the tax due on outward supplies; existing stock is sold at the new lower rate and there is no ITC reversal or additional liability arising from previously purchased inputs. Composition taxpayers must continue to pay the prescribed composition rate (commonly 1% for traders where applicable) on sales; the rate change simply reduces the tax charged at the time of sale.