Rule 5 - Conditions and restrictions for composition levy

Central Goods and Services Tax Rules, 2017

The answer is No.

Any registered person who is holding stock on the appointed day i.e. 1.7.2017, can not avail the benefit of composition scheme if he fails to fulfill the conditions of Rule 5(1)(b) which states that:

" (b) the goods held in stock by him on the appointed day have not been purchased in the course of inter-State trade or commerce or imported from a place outside India or received from his branch situated outside the State or from his agent or principal outside the State, where the option is exercised under sub-rule (1) of rule 3; "

 

Composition scheme eligibility denied where stock on appointed day was purchased inter state, imported, or received from outside State. Persons below the turnover threshold who hold stock on the appointed day cannot opt for the composition scheme if that stock was purchased inter state, imported, or received from an out of State branch, agent or principal; possession of such goods on the appointed day disqualifies a registered person from the composition levy.