Voilation of provisions of section 10 composition scheme

[Varun Kumar Gonuguntla]

I have been registered uder composition. I have unknowingly made Inter State Supply in FY 2019-20 & FY 2020-21. I have received a notice u/s 74 regarding the same, directing me to pay tax @18? on total turnover from those 2 financial years.

Is there any way to reduce my liability? 

Can I adjust the liabilty with ITC on purchases made in those two financial years?

Are there any case laws regarding the same? 

AI Summary

Composition scheme ineligibility from inter state supply can trigger regular GST liability and challenge to fraud invocation.
Inter State supplies made while under the Composition Scheme render the taxpayer ineligible for composition and expose turnover to tax under the regular regime with potential interest and penalties. The taxpayer may contest invocation of the extended limitation fraud provision by denying fraud, seeking adjudication under the ordinary limitation provision, pursuing adjustment of eligible Input Tax Credit where applicable, and requesting waiver or reduction of penalties; recent high court authorities support quashing extended limitation notices absent allegations of mens rea.