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If your business turnover is projected to exceed ₹1.5 crore due to price increases, it's time to consider opting out of the GST composition scheme and switching to the regular scheme. You can claim Input Tax Credit (ITC) on existing stock. Be aware that delaying this transition can lead to penalties under Section 122 of the GST Act.

Harshad Khona

Harshad Khona (Querist)

24 November 2022 Due to increases in prices, I fill my turn over may go beyond 1.5 cr .
When should I come out .
If your advise to come out then procedure & precautions required.
Pl help.

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)

24 November 2022 The moment you cross the threshold you should opt out of composition and opt for regular. You can avail benefit of ITC on GST paid held in stock as on the date of opting out of composition.

Harshad Khona

Harshad Khona (Querist)

24 November 2022 Is there any penalty if there is small delay?

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)

24 November 2022 yes it can be under section 122 general penalty

Harshad Khona

Harshad Khona (Querist)

24 November 2022 Thank you sir for your help.

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