Composition option effective date clarified: withdrawal effective as stated; denial may be retrospective from date of contravention. A taxpayer's voluntary withdrawal from the composition scheme takes effect from the date indicated in FORM GST CMP-04, not earlier than the start of that financial year. Where authorities deny the composition option after issuing FORM GST CMP-05 and ordering in FORM GST CMP-07, the denial may be effective from the date of option or the date of contravention but not earlier than the contravention; proceedings for determination of tax, interest and penalty must be initiated for the period from contravention to the order, and tax liability as a normal taxpayer arises from the date of the order.
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Provisions expressly mentioned in the judgment/order text.
Composition option effective date clarified: withdrawal effective as stated; denial may be retrospective from date of contravention.
A taxpayer's voluntary withdrawal from the composition scheme takes effect from the date indicated in FORM GST CMP-04, not earlier than the start of that financial year. Where authorities deny the composition option after issuing FORM GST CMP-05 and ordering in FORM GST CMP-07, the denial may be effective from the date of option or the date of contravention but not earlier than the contravention; proceedings for determination of tax, interest and penalty must be initiated for the period from contravention to the order, and tax liability as a normal taxpayer arises from the date of the order.
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