Denial of composition option: retrospective effective date tied to date of contravention with tax recovery obligations. Denial and withdrawal of the composition option determine when a registered person becomes liable to pay tax as a normal taxpayer. Withdrawal is effective from the date indicated in FORM GST CMP-04, not earlier than the financial year's commencement. Denial by tax authorities may be made effective retrospectively but not prior to the date of contravention; tax, interest and penalty proceedings must be initiated for the period from contravention to the denial order, and credit on stock and capital goods is subject to statutory rules as of the day before the denial order.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Denial of composition option: retrospective effective date tied to date of contravention with tax recovery obligations.
Denial and withdrawal of the composition option determine when a registered person becomes liable to pay tax as a normal taxpayer. Withdrawal is effective from the date indicated in FORM GST CMP-04, not earlier than the financial year's commencement. Denial by tax authorities may be made effective retrospectively but not prior to the date of contravention; tax, interest and penalty proceedings must be initiated for the period from contravention to the denial order, and credit on stock and capital goods is subject to statutory rules as of the day before the denial order.
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