Composite dealer questions for sale turnover

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Kollipara Sundaraiah (Querist)
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10 September 2022 Sir,
A Gst registered composite scheme dealer returns july-21 to june-22 non filed composite returns.department notice each quarter sales turnover rs:12 lacs tax and penalty July to September -21
Sales turnover rs:12 lacs tax and penalty October -december-21
Sales turnover rs:12 lacs tax and penalty January to March -22
Sales turnover rs:12 lacs tax and penalty April to june-22.
Question:
Dealer notice show turnover and tax and penalty compulsory pay.

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
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06 July 2024 If a GST registered composite scheme dealer has received notices for non-filing of composite returns and is required to pay tax and penalty based on estimated turnover, here’s how they should proceed:

1. **Understanding the Notices:**
- The notices indicate that the tax authorities have estimated the turnover for each quarter (July-September 2021, October-December 2021, January-March 2022, and April-June 2022) to be Rs. 12 lakhs.
- They have levied tax and penalty based on this estimated turnover, assuming that the dealer should have filed their composite returns for these quarters.

2. **Compulsory Payment Requirement:**
- The dealer is obligated to respond to these notices promptly.
- Since the notices specify tax and penalty based on the estimated turnover, the dealer is required to pay these amounts as indicated in the notices.

3. **Payment Procedure:**
- The dealer should log in to the GST portal and navigate to the payment section.
- Generate a payment challan for each quarter mentioned in the notice (July-September 2021, October-December 2021, January-March 2022, and April-June 2022).
- Make the payment of tax and penalty through the GST portal using the generated challans.

4. **Filing of Composite Returns:**
- Alongside making the payments, the dealer should immediately file the pending composite returns for each of the mentioned quarters.
- Ensure that all details, including actual turnover, tax liability, and any eligible credits, are accurately reported in these returns.

5. **Documenting Compliance:**
- Keep records of all payments made and filings completed as part of compliance with the notices.
- Retain copies of challans, return filings, and correspondence with the tax authorities for future reference.

6. **Seeking Professional Advice:**
- If there are any discrepancies or if the dealer believes that the estimated turnover in the notices is incorrect, they should seek advice from a GST practitioner or consultant.
- Professional guidance can help in navigating the process and ensuring that all obligations are met correctly.

By promptly paying the tax and penalty as per the notices and filing the pending composite returns, the dealer can comply with the GST regulations and resolve the issues raised by the tax department effectively.

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