I HAD ONE QUERY RELATED TO GST
APPLICABILITY UNDER COMPOSITE SCHEME. MY ONE OF THE CLIENT HAS MADE INTER STATE
SALE IN BETWEEN JULY TO SEPTEMBER. CONSULTANT HAS APPLIED FOR COMPOSITE SCHEME
AND MY CLIENT ARE NOW PAYING GST UNDER COMPOSITE SCHEME. MY CLIENT IS DOING
BUSINESS OF ELECTRONIC ITEM OF TV AC AND REFRIGERATOR.
AS PER MY OPINION AS HE HAS ALREADY
MADE INTERSTATE SALE. HE IS NOT ELIGIBLE FOR COMPOSITE SCHEME.
I WANT TO KNOW ABOUT CONSEQUENCE FOR
KINDLY GUIDE ME ON THE SAME WHETHER
HE IS ELIGIBLE FOR COMPOSITE SCHEME OR NOT
I agree with your opinion, a person engaged in providing
inter-state supply of goods is not eligible for composition scheme.
Now your client has to surrender Registration under
composition scheme by filing GST CMP-04 and move to normal scheme, after
complying with required provisions, and by paying differential tax amount,
penalty amount, etc.
And also has to file GST ITC-01 regarding details of input
and input containing in Semi finished and Finished goods held in stock on the
date of Withdrawn within a period of 30 days of withdrawal to claim ITC which
can be utilised for set off of output tax liability due to GST.
Therefore, if a small taxpayer who has limited
knowledge of tax laws and compliance makes any mistake under composition
scheme, he shall be liable to pay tax at standard rate on his total turnover
along with a penalty which will be equal to the total tax liability.