TMI BlogDenial of composition option by tax authorities and effective date thereofX X X X Extracts X X X X X X X X Extracts X X X X ..... ods and Services Tax Rules, 2017 (hereinafter referred to as the CGST Rules ) deals with the validity of the composition levy. As per the said rule, the option exercised by a registered person to pay tax under the composition scheme shall remain valid so long as he satisfies the conditions mentioned in section 10 of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as the CGST Act ) and the CGST Rules . The rule lays down the procedure for withdrawal from the composition scheme by a taxpayer who intends to withdraw from the said scheme and also the procedure for denial of option to the taxpayer to pay tax under the said scheme where he has contravened the provisions of the CGST Act or the CGST Rules. 2. In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in FORM GST CMP-04 within seven days of the occurrence of such event. 4. As per sub-rule (4) of rule 6 of the CGST Rules , where the proper officer has reasons to believe that the registered person was not eligible to pay tax under section 10 of the CGST Act or has contravened the provisions of the CGST Act or the CGST Rules , he may issue a notice to such person in FORM GST CMP-05 to show cause as to why the option to pay tax under section 10 of the CGST Act shall not be denied. Upon receipt of the reply to the show cause notice from the registered person in FORM GST CMP-06 , the proper officer shall, in accordance with the provisions of sub-rule (5) of rule 6 of the CGST Rules , issue an order in FORM GST CMP-07 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... istered person shall be liable to pay tax under section 9 of the CGST Act from the date of issue of the order in FORM GST CMP-07 . Provisions of section 18(1)(c) of the CGST Act shall apply for claiming credit on inputs held in stock, inputs contained in semi-finished or finished goods held in stock and on capital goods on the date immediately preceding the date of issue of the order. 6. It is requested that suitable trade notices may be issued to publicize the contents of this circular. 7. Difficulties, if any, faced in implementation of the above instructions may be brought to the notice of the Board at an early date. Hindi version would follow. (Upender Gupta) Commissioner (GST) - Circular - Trade Notice - Pub ..... X X X X Extracts X X X X X X X X Extracts X X X X
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