How to recover GST loss for composition Gst payers?
I have old stock purchased at 12% & 18%... But now I have to sell all the all the old stock at 5% GST or revised reduced MRP... I am at loss of GST which I have already paid while buying goods from Stockiests...
In such scenario what should I do to recover or reduce loss due to revised GST.
Section 10 GST composition taxpayer faces mandated MRP reduction with 5% GST causing tax-induced loss on existing stock A composition scheme taxpayer purchased stock earlier taxed at 12% and 18% and now faces a government mandate to sell at reduced MRP with 5% GST, creating a tax-induced loss because input tax was already paid and composition taxpayers generally cannot claim input tax credit. The forum reply suggested ignoring the revised MRP, but the OP states the government requires compliance. Key legal issues: whether mandatory price/GST reduction applies to existing inventory, entitlement to any refund or adjustment, and whether switching from composition to regular registration (and its timing/effects) or other administrative remedies could mitigate the loss. (AI Summary)
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