How to Withdraw from GST Composition Levy Scheme : FAQ

By | October 30, 2017
(Last Updated On: October 30, 2017)

Withdrawal from Composition Levy

1. Can I withdraw from the Composition Levy?

Yes, you can withdraw from the Composition Levy, at any time of the financial year, voluntarily.

You can also withdraw from Composition Levy if

  1. your Annual aggregate turnover exceeds 50 lacs in Arunachal Pradesh, Assam, Himachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, & Uttarakhand and 75 lacs in other States & UTs [ Note refer :Notification No 46/2017 Central Tax : Turnover Limit for Composition scheme Increased ]
  2. you have started making Interstate supplies
  3. you start manufacturing notified goods like Pan masala etc.
  4. you started supplying goods through electronic commerce operator, who is required to collect TCS under GST Act
  5. you started providing other services except Restaurant services
  6. goods and services, you are supplying becomes exempt

2. When do I need to withdraw from the Composition levy?

The application to withdraw from the Composition levy is required to be filed within 7 days from the date when taxpayer fails to satisfy any condition of Section 10 of CGST Act or rules made thereunder.

3. What form need to be filled by me to withdraw from the Composition levy?

The application to withdraw from the Composition levy is required to filled in the Form GST COMP -04.

4. Do I need any approval from Tax authorities to withdraw from the Composition levy?

You do not need any approval from State or Centre Tax Authorities to withdraw from the Composition levy. Once the application to withdraw from the Composition levy is filed, application is auto approved and you have outed out of the Composition levy.

5. Is it mandatory to file Intimation of Stock Details after withdrawal from the Composition levy?

Yes, it is mandatory to file a Stock Intimation. After filing the application to withdraw from the Composition levy, you are required to file 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inputs and inputs contained in semi-finished or finished goods held in stock by you on the date on which the option is withdrawn or denied, within a period of thirty days from the date from which the option is withdraw.

6. How is the application for Withdraw from the Composition Levy authenticated?

The application for Withdraw from the Composition Levy can signed using DSC or authenticated using Electronic Verification Code (EVC).

7. How will I know if my application for Withdraw from the Composition Levy is successfully filed?

On successfully signing the application, the success message is displayed. You will receive an acknowledgement with an Application Reference Number (ARN), within 15 minutes of successful submission of your application, on your registered e-mail address and mobile phone number.

 

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