Can a person paying tax under composition scheme make supplies of goods to SEZ?

No. Supplies to SEZ from domestic tariff area will be treated as inter-State supply. A person paying tax under composition scheme cannot make inter-State outward supply of goods. Thus, for making supplies to an SEZ unit, a person needs to take registration as a regular taxpayer. The supplies to SEZ will be zero rated and … Read more

In case the option to pay tax under composition levy is denied by the proper officer, can the person avail ITC on stock after denial?

Yes. ITC can be availed by filing, a statement in FORM GST ITC-01 (containing details of the stock of inputs and inputs contained in semi-finished or finished goods held in stock) by him on the date on which the option is denied as per order in FORM GST CMP-07, within a period of thirty days … Read more

What action can be taken by the proper officer for contravention of any provisions of composition levy and how?

Where any contravention is observed by the proper officer wherein the registered person was not eligible to pay tax under the composition scheme or has contravened the provisions of the CGST Act, 2017 or provisions of Chapter II of the CGST Rules, 2017, he may issue a notice to such person in FORM GST CMP-05 … Read more

Can a person paying tax under composition levy, withdraw voluntarily from the scheme? If so, how?

Yes. The registered person who intends to withdraw from the composition scheme can file a duly signed or verified application in FORM GST CMP-04. Every person who has filed an application for withdrawal from the composition scheme, may electronically furnish, a statement in FORM GST ITC-01 containing details of the stock of inputs and inputs … Read more

What are the other conditions and restrictions subject to which a person is allowed to avail of composition scheme?

The person exercising the option to pay tax under section 10 shall comply with the following other conditions (in addition to what is stated in answer to Q 4 above), namely: – a) he shall mention the words “composition taxable person, not eligible to collect tax on supplies” at the top of the bill of … Read more