Composition limit under Section 10 crossed

[gunda ashok kumar]

Sir,

One of my client has opted the composition scheme under section 10 of CGST Act and forgotten to give option to come out from the composition. The authority has levied the tax as per scheduled rates of 12% and 18% on taxable goods but denied ITC as per Section 18 of the CGST Act.

1.Pl clarify whether the client is eligible ITC during the period in dispute as per Section 18 when the client was not opted from composition to regular taxpayer?

AI Summary

GST Composition Scheme: Client Faces Standard Tax Rates Without ITC for Failing to Switch; Importance of Rule 40 Filing A client who opted for the GST composition scheme under Section 10 of the CGST Act failed to switch to a regular taxpayer, resulting in the authority imposing taxes at standard rates of 12% and 18% without allowing Input Tax Credit (ITC) as per Section 18. Respondents in the forum discuss the eligibility for ITC during the disputed period, emphasizing the importance of filing ITC-01 within 30 days as per Rule 40, and the possibility of litigation if not filed due to non-technical reasons. They also highlight procedural requirements for officers and potential penalties under Section 10(5).