wrong composition

[Guest]

one of my client has switched from regular to composition w.e.f. 1/8/2017 by filing CMP 02 while his CA has not filed ITC 03 and his composition levy was invalid because of his aggregate turnover of the preceding FY which was 103 lakhs. And now he filed only two quarters returns from july 17 to dec 17. while his turnover for the FY 17-18 was 120 lakh as per tax audit report and on which his VAT turnover was 65 lakh and GST turnover was 55 lakhs.

Now please suggest me what should I do? As per my opinion now switching from composition to regular is the best option for him.

[KASTURI SETHI]

First of all approach jurisdictional GST Officer (Range Officer or Divisional Officer) and give in writing what has happened so far and also mention your client wants to shift from Composition to Regular GST Scheme again. Penalty will be levied for non-filing of returns and ITC-3. Penalty may be imposed for submission of wrong information on Common Portal System for the purpose of shifting from regular to Composition Scheme.After payment of penalty your client will be allowed to switch from composition to regular GST scheme again. Common Portal System will not allow to shift from Composition scheme to regular GST Scheme until Govt. dues are cleared. You need the guidance and help from Range Officer for setting everything right in Common Portal System.

AI Summary

Composition scheme non-compliance: penalties and requirement to clear dues before reverting to regular GST registration Registrant switched incorrectly to the composition scheme despite ineligible aggregate turnover and failed to file required return/form and some quarterly returns; penalties may be levied for non filing and for submitting incorrect information on the common GST portal. The prescribed remedy is to submit a written disclosure to the jurisdictional GST officer, pay outstanding dues and penalties, and work with the officer to clear portal blocks so the taxpayer can revert to the regular GST scheme.