Denial of composition option by tax authorities and effective date thereof.

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..... ………………………………………. Subject: Denial of composition option by tax authorities and effective date thereof. Rule 6 of the Rajasthan Goods and Services Tax Rules, 2017 (hereinafter referred to as the "RGST Rules") deals with the validity of the composition levy. As per the said rule, the option exer .....

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..... n raised regarding the effective date of denial of the option to pay tax under the composition scheme where action has been initiated by the tax authorities to deny such option to the 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 clarif .....

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..... for withdrawal from the scheme in FORM GST CMP-04 within seven days of the occurrence of such event. 4. As per sub-rule (4) of rule 6 of the RGST Rules, where the proper officer has reasons to believe that the registered person was not eligible to pay tax under section 10 of the RGST Act or has contravened the provisions of the RGST Act or the RGST Rules, he may issue a notice to such person in .....

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..... ication filed in FORM GST CMP-04 but such date may not be prior to the commencement of the financial year in which such intimation/application for withdrawal is being filed. If at any stage it is found that he has contravened any of the provisions of the RGST Act or the RGST Rules, action may be initiated for recovery of tax, interest and penalty. In case of denial of option by the tax authorities .....

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..... ct shall apply for claiming credit on inputs held in stock, inputs contained in semi-finished or finished goods held in stock and on capital goods on the date immediately preceding the date of issue of the order. 6. It is directed to publicize and make aware the trade and industry about the contents of this circular. (Dr. Preetam B. Yashvant) Commissioner State Tax, Rajasthan, Jaipur Da .....

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