TaxTMI 
TaxTMI 
Denial of composition option by tax authorities and effective date thereof
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.... Circular No. 77/51/2018-GST Rule 6 of the Delhi Goods and Services Tax Rules, 2017 (hereinafter referred to as the "DGST Rules") deals with the validity of the composition levy. As per the said rule, the option exercised by a registered person to pay tax under the composition scheme shall remain valid so long as he satisfies the conditions mentioned in section 10 of the Delhi Goods and Service....
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....composition taxpayer. Further, clarification has been sought regarding the follow up action to be taken by the tax authorities when the composition option is denied to the taxpayer retrospectively. In order to clarify these issues and to ensure uniformity in the implementation of the provisions of the law across field formations, the Commissioner, in exercise of the powers conferred by section 168....
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....es, where the proper officer has reasons to believe that the registered person was not eligible to pay tax under section 10 of the DGST Act or has contravened the provisions of the DGST Act or the DGST Rules, he may issue a notice to such person in FORM GST CMP-05 to show cause as to why the option to pay tax under section 10 of the DGST Act shall not be denied. Upon receipt of the reply to the sh....
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....drawal is being filed. If at any stage it is found that he has contravened any of the provisions of the DGST Act or the DGST Rules, action may be initiated for recovery of tax, interest and penalty. In case of denial of option by the tax authorities, the effective date of such denial shall be from a date, including any retrospective date as may be determined by tax authorities, but shall not be pr....