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TMI BlogGST Summon & Composition SchemeX X X X Extracts X X X X X X X X Extracts X X X X ..... GST Summon & Composition Scheme X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2020-21 to 2023-24) at 6% instead of the regular rate of 18%? Can we avail such relief? or any other relief Reply By Sadanand Bulbule: The Reply: Dear In terms of Section 10[1], only a registered person can opt for composition scheme subject to other conditions. So being unregistered during period from 2020-21 to 2023-24, in my personal opinion your client is not eligible for such scheme. Se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... condly but for the summon issued by the department, your client would have chosen to remain outside the registration/tax net. Is it not a deliberate decision to remain so? Reply By KASTURI SETHI: The Reply: The Composition Scheme cannot be opted for retrospectively. Reply By Sadanand Bulbule: The Reply: Dear querist, Refer the following for failure to get registered, despite being liable for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... registration: 2025 (1) TMI 1429 - MADRAS HIGH COURT - M/S. ANNAI ANGAMMAL ARAKKATTALAI (PRE MAHAL), Vs. THE JOINT COMMISSIONER OR GST (APPEALS), COIMBATORE, THE ASSISTANT COMMISSIONER OF GST & CENTRAL EXCISE, KARUR DIVISION. As rightly pointed out by Sethi Sir, there is no provision for retrospective benefit for composition scheme. Reply By VENU K: The Reply: No composition scheme for past lia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bilities. Unregistered persons need to be assessed under Sec 63 on a best judgment basis. If the summons are relating to non registration then you have no options but to pay the demand in most cases. If the summons are not related to non-registration , then immediately take a registration. Once the person becomes a registered person then proceedings to assess past periods through Sec 63 or even ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... audit under Sec 65 are very difficult. Registration will oust jurisdiction under Sec 63. Even departmental audit relating to period during which registered person was unregistered would be very difficult in my opinion.
So the best course, in my opinion, is to take a registration immediately and take the rest of the proceedings in your stride. X X X X Extracts X X X X X X X X Extracts X X X X
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