Why is everybody busy clearing old stock bfr 30th June? How does it benefit Vendor?

Why everybody is busy clearing old stock bfr 30th june, what is the logic behind this? How does it benefit Vendor?

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2 Answer(s)

Because in GST regime you would get tax credit for the stock which was purchased one year before implementation of GST Act so old stock needs to be handled.

Answered on June 25, 2017.
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Apart from the ITC benefit, another possible reason could be different tax rates. under current law the goods which is charged at 14.5 (say) could be charged at higher rate at 28 (say) under GST. the difference in tax rate is cash outflow.

Answered on June 25, 2017.
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Your Answer

Gen GST