GST Summon & Composition Scheme

[Priyesh Mamnani]

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

AI Summary

Composition scheme retrospective relief denied; past unregistered liabilities subject to assessment under best judgment proceedings and immediate registration advised.
The Composition Scheme cannot be applied retrospectively: only a registered person may opt in, so past unregistered periods are not eligible. Unregistered persons will be assessed on a best judgment basis for liabilities arising during non registration, and immediate registration is advised to change status and help limit subsequent assessment or audit exposure.