Composition - 2 queries

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Shivani (Querist)
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25 April 2017 Dear Experts

First Query

If my on say 21-Feb-19, my aggregate turnover for FY 18-19 exceeds rs. 50 lak when I issue bill of supply at 10:00 AM, then do I have to issue for the next supply I make Tax Invoice and charge GST and collect it from customer?

OR

can I for the day of 21-Feb-19 continue to issue bill of supply and come within preview of normal GST scheme from next day.

I am asking coz the word used in section 10(3) is with effect from day and not w.e.f. moment.

Second Query
under section 10(5) it says that if someone wrongly avails of composition scheme than he has to pay GST as would have been applicable had he not applied for the scheme. my question is will the composition tax be adjusted against his GST liability or what he has paid is gone and will not be adjusted?

regards
shivani

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Rajesh Kumar

Rajesh Kumar (Expert)
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26 April 2017 Yes, from the next customer you are required to collect GST. The provision shall become applicable from that moment onwards. Any different interpretation shall result in absurdity. In GST law a person is allowed to issue invoice in advance, even much before time of removal of goods (Section 31). If composition scheme is allowed till the end of day, he can issue numerous advance invoices worth crores or hundreds of crores before the end of the day.
Composition tax paid shall be adjusted against the actual tax liability. I cannot refer to any Section to you at this point of time, the law being new I have not developed much control of the sections as of now.