composition schemes wrongly

refund tax to the customer.

credit note can be issued with respect to tax invocie along with GST. The taxable turnover is nullified.

Issue fresh invoice (bill of supply) without GST.

discharge the tax liability with interest and also file the return. From next time onwards don't show tax component in your invoice.

tax paid on purchase 240000
tax on sales 160000

I would be loss if refund to consumer

is your customer is unregisterd customer

registered

when did you take regn number for composition scheme?

1st Oct

you can file composition return normally and pay 1 % (assuming u r trader ) on sales from period oct to march with interest and fees but for this you will have to convince your customer that i have wrongly charged the tax on invoice but there ia high chances they will not accept your statement because they would have taken input in gstr 3b also if they are convinced they would have to pay tax interst on excess input taken and ultimately will recover from you

so there are 2 options left with you

1. pay to govt the whole tax and come under the eyes of officers
2. pay to your registered customers the wrong input credit which they have to bear because of you and pay 1% to normally to govt with interest

Where it has been shown in the GSTR 4, when i issue a credit note to the registered customers, so that they will reverse their input credit.