Whether any person , who is otherwise eligible for Composition Levy Under Section 10,  has goods imported from outside U.P. in the Stock held on the Appointed  Day i.e. Ist July ,2017 , will get the benefit of composition levy?

Reply:

If any person has any goods imported from outside the State in the stock held on the Appointed  Day i.e. Ist July , 2017, then such person shall not be eligible for composition levy under section 10 in the GST regime .

The aforesaid is quite evident from rule 5(1)(b) of the CGST Rules , 2017 ( exactly the same provisions are envisaged in the SGST Rules, 2017 ) which embodies that –

“5(1) The person exercising the option to pay tax under section 10 shall comply with the following conditions ,namely 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 , where the option is exercised under sub-rule (1) of  rule 3.”

It is also pertinent to note that the above mentioned sub-rule(1) of Rule 3 embodies provisions relating to Form GST CMP-01 which is to be filed by the person opting for composition levy under section 10 and other related requisites  .

 

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