Taxation - Income TaxQuestion 5634 of 146
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11. Veena & Co. will be eligible to claim ITC held on Stock and Capital goods as on _____________.

Options

A01-09-2023
B24-09-2023
C25-09-2023
D30-09-2023 (2 Marks) Case Scenario 4 Pawan was engaged in providing various services within the State of Rajasthan since May 2023. His aggregate turnover crossed the threshold limit on 04.07.2023. He applied for registration under GST on 02.08.2023. He got his GST registration on 10.08.2023. After taking registration, Pawan started a business across India including supply of goods also. He dispatched goods pan India based on orders he got for the goods dealt by him. He received an order from Delhi for which he supplied taxable goods valuing ` 45,000. Applicable rate of IGST was 12%. He also supplied certain exempted goods valuing ` 4,000. He made one invoice for both taxable as well as exempted supply made to Delhi. He asked his tax consultant for the requirement of generation of e-way bill for this order. Tax consultant informed him that the requirement of e-way bill is based on consignment value of goods supplied. Even being a micro enterprise, Pawan did not receive timely payment from his customers as a result of which he ran into severe cash crunch and eventually could not make on-time payment to his suppliers. As a result, he decided to shut down his business and got placed in a software company as a senior programmer executive. While shutting down his business, he informed his tax consultant to cancel the GST registration. Tax consultant surrendered his registration online in GST Portal TAXATION on 25.10.2023 and his application for cancellation was approved by the Proper Officer on 31.10.2023. All the amounts given above are exclusive of taxes wherever applicable. From the information given above, choose the most appropriate answer for the 12-14 questions:
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Correct Answer

✅ Option B — 24-09-2023

All Options:

  • A01-09-2023
  • B24-09-2023 ✓
  • C25-09-2023
  • D30-09-2023 (2 Marks) Case Scenario 4 Pawan was engaged in providing various services within the State of Rajasthan since May 2023. His aggregate turnover crossed the threshold limit on 04.07.2023. He applied for registration under GST on 02.08.2023. He got his GST registration on 10.08.2023. After taking registration, Pawan started a business across India including supply of goods also. He dispatched goods pan India based on orders he got for the goods dealt by him. He received an order from Delhi for which he supplied taxable goods valuing ` 45,000. Applicable rate of IGST was 12%. He also supplied certain exempted goods valuing ` 4,000. He made one invoice for both taxable as well as exempted supply made to Delhi. He asked his tax consultant for the requirement of generation of e-way bill for this order. Tax consultant informed him that the requirement of e-way bill is based on consignment value of goods supplied. Even being a micro enterprise, Pawan did not receive timely payment from his customers as a result of which he ran into severe cash crunch and eventually could not make on-time payment to his suppliers. As a result, he decided to shut down his business and got placed in a software company as a senior programmer executive. While shutting down his business, he informed his tax consultant to cancel the GST registration. Tax consultant surrendered his registration online in GST Portal TAXATION on 25.10.2023 and his application for cancellation was approved by the Proper Officer on 31.10.2023. All the amounts given above are exclusive of taxes wherever applicable. From the information given above, choose the most appropriate answer for the 12-14 questions:

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Detailed Solution & Explanation

Correct Answer: Option **B** Explanation: Under Section 18(1)(c) of the CGST Act, 2017, when a registered person ceases to pay tax under the composition scheme and opts to pay tax under the regular scheme, they are entitled to take credit of input tax in respect of inputs held in stock, inputs contained in semi-finished or finished goods held in stock, and capital goods on the day immediately preceding the date from which they become liable to pay tax under the regular scheme.

Here, M/s. Veena & Co.'s aggregate turnover crossed the limit of ₹ 150 lakh on 25.09.2023, making them liable to pay tax under the regular scheme from that date (25.09.2023).

Therefore, the day immediately preceding the date of liability under the regular scheme is 24.09.2023. M/s. Veena & Co. will be eligible to claim ITC on stock and capital goods held on 24-09-2023.

Hence, **Option B** is the correct answer.

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