My client is a service provider and has received a summon from the CGST Authorities. Until now, he has not obtained GST registration, even though his turnover has exceeded ₹20 lakhs since 2020-21. I am certain that the officer will require him to obtain GST registration and pay the outstanding GST liabilities.
My client's annual turnover has been around ₹22 lakhs from 2020-21 to 2023-24. Therefore, we are applying for registration under the Composition Scheme as per Section 10(2A) and will be paying tax at 6%.
My Question:
Can we apply the Composition Scheme and pay past liabilities (i.e., from 2020-21 to 2023-24) at 6% instead of the regular rate of 18%? Can we avail such relief? or any other relief
Service provider must register for GST; Composition Scheme under Section 10(2A) not applicable retrospectively for past liabilities. A service provider received a summon from CGST authorities for not registering for GST despite exceeding the 20 lakh turnover threshold since 2020-21. The client, with a turnover of around 22 lakhs annually, seeks to apply for the Composition Scheme under Section 10(2A) and pay a 6% tax rate for past liabilities instead of the regular 18%. Respondents clarified that the Composition Scheme cannot be applied retrospectively and is only available to registered persons. It was advised to register immediately, as unregistered persons are assessed under Section 63, and registration could limit jurisdictional challenges. (AI Summary)
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