Denial of composition option by tax authorities and effective date thereof....

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..... ………………….. ………………….. Subject: Denial of composition option by tax authorities and effective date thereof.... Sir/ Gentlemen/ Madam 1. Rule 6 of the Maharashtra Goods and Services Tax Rules, 2017 (hereinafter referred to as the "MGST Rules") deals with the validity of the composition levy. As per .....

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..... to withdraw. Doubts have also been raised regarding the effective date of denial of the option to pay tax under the composition scheme where action has been initiated by the tax authorities to deny such option to the composition taxpayer. Further, clarification has been sought regarding the follow up action to be taken by the tax authorities when the composition option is denied to the taxpayer re .....

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..... ithdrawal, file an application in FORM GST CMP-04 on the common portal. He shall file intimation for withdrawal from the scheme 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 MGST Rules, where the proper officer has reasons to believe that the registered person was not eligible to pay tax under section 10 of the MGST Act or has contr .....

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..... composition scheme, the effective date shall be the date 6. indicated by him in his intimation/ application filed in FORM GST CMP-04 but such date may not be prior to the commencement of the financial year in which such intimation/ application for withdrawal is being filed. If at any stage it is found that he has contravened any of the provisions of the MGST Act or the MGST Rules, action may be in .....

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..... from the date of issue of the order in FORM GST CMP-07. Provisions of section of the MGST 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. Difficulty, if any, in implementation of this Circular may be brought to the notice of the .....

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