What Happened To Closing Stock In gst?

By Author: Mohit Yadev
Total Articles: 74
Comment this article

GST has been implemented from 01.07.2017, Now every businessman/trader/dealer/ manufacturer/service provider have one big confusion and question in mind. What will happen of the unsold stock as on 30.06.2017?who all are eligible for input tax credit? How the VAT credit will be treated? How much percentage credit will be allowed as input credit? What all documents are needed to avail the input credit? How should the accounting be done for closing stock?, Input tax credit on closing stock under GST, GST impact on old inventory, Input tax credit on closing stock under GST, GST Impact on closing stock, Moving to GST: Can I Avail Input Credit on Closing Stock etc..

You might know GST Software Provider In India.

The Central Board of Excise Board and Revenue Department said: “The law allows you to carry forward your inputs tax credit and ensures that no input tax credit will be lost while migrating/transitioning to the new regime.”
The CBEC has come out with clarifications on what details will be required to avail input tax credit available to manufacturers, traders and service providers under GST.
The ...
... person who is registered either as a first stage dealer, second stage dealer or a registered importer.

First stage dealer and second dealer are liable for registration under Central Excise if they deal/trade in excisable goods.
They are not eligible to take credit of excise duty paid, but they are permitted to pass on this credit of the duty paid to registered manufacturer. (As this increases the final cost of the product as first stage or second stage dealer adds the excise duty paid to the price of the product.)
This excise duty which is paid by first stage & second stage dealer is allowed as a input credit to the registered manufacturer of dutiable goods.
Similarly, one needs to get registered as an importer under Central Excise if deals in import of goods, and discharge the applicable import duty.
Businesses which are not required/liable to be registered under any of the current laws but needs a registration under GST.

As per VAT, businesses are required to be registered only when turnover during the financial year crosses the threshold limit. The threshold limit is different from state to state.
As per the Central Excise Act and Rules, businesses which are involved in manufacturing are required to be registered only when the aggregate clearance value crosses Rs 1.5 crores (threshold limit), and the liability to discharge the duty arises.
But after the implementation of GST, same businesses may require to be registered as threshold limit are not the same as current laws (VAT, Central Excise Act and Rules) .
As per GST, businesses will require registration, if the aggregate turnover exceeds Rs 10 lakhs for Special Category States (Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand) and Rs 20 Lakhs for the rest of India.
Businesses which deals in either the manufacture or sale of exempted goods under current laws but the same goods become taxable under GST.

As per the current laws, manufacture or sale of certain goods may be exempted, but if these become taxable after transition to GST.
Businesses which provide works contract services or other services but avails the benefit of exemption notification for such services.

As per the current laws, works contract services or other services you are providing may be exempted, but if these become taxable after transition to GST.