Revoking composition option from this quarter onwards

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 October 2017 Sir,

Earlier, we have opted for Composition method and have got ARN for the same. Now, since we expect that, the total turnover might exceed Rs. 7500000/- well before the end of this financial year, we like to switchover to the regular method from October onwards. ( Our total turnover upto Sep 17 is well below the threshold limit of Rs. 7500000/- )
Shall we opt out of composition method now and if we do so, what will be the fate of the first 3 months' return viz Jul to Sep. Whether we have to file the quarterly return at the applicable rate for Jul to Sep and continue filing monthly returns from Oct onwards ?
Will we be asked to pay the difference of tax between the Composition rate and the GST rate under regular stream for the period Jul to Sep ? Kindly advice.

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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03 October 2017 For the first three months you were in composition so you will have to file GSTR-4 as applicable to composition dealers and also pay tax @1% on your these three months sale.

RAJA P M

RAJA P M (Expert)
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03 October 2017 Yes... Agreed with Mr. CA Abhishek Goyal Sir., You ll file GSTR 4 for the above said Quarter. Also, You can follow as Regular Scheme under GST on reached your your T/O....

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Querist : Anonymous

Querist : Anonymous (Querist)

03 October 2017 But will I be asked to pay the difference of tax between Composite rate of tax and GST as applicable under normal scheme on the said turnover, at a later date ?

RAJA P M

RAJA P M (Expert)
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03 October 2017 Can't understand.....
Explain again

Querist : Anonymous

Querist : Anonymous (Querist)

03 October 2017 For example : if my turn over for the quarter is 5 Lakhs and I pay tax @ 1% under composite scheme, amounting to Rs. 5000/- and I switch over to Regular stream from Oct onwards and if my commodity falls under 5% GST. Then, will I be asked to pay the difference amount between 1% and 5% for Rs. 5 lakhs, which is my turnover for the Qtr - Jul to Sep ( Note: The same HSN code is continued in the trade )

Querist : Anonymous

Querist : Anonymous (Querist)

03 October 2017 Shall I wait for your reply, Mr. Raja P M

RAJA P M

RAJA P M (Expert)
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03 October 2017 On composition scheme we can't follow the Tax rate for the Inward / Outward supplies under C/S.
But, In RD we must follow the Rate of tax based on the HSN.
After falling RD scheme the we calculate tax based on the sales after 01st oct-17... It's not to 1%

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Querist : Anonymous

Querist : Anonymous (Querist)

03 October 2017 Thank you Mr. Raja P M

RAJA P M

RAJA P M (Expert)
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03 October 2017 You are welcome Dear...
>>> GOOD LUCK <<<