A GST officer has issued a notice to a composite scheme dealer for alleged inter-state outward supply, which is not permitted under Section 10(2)(c) of the GST Act. The dealer is seeking advice on whether the officer's actions are correct and how to proceed with penalties. The advice includes reviewing e-way bills, responding to the notice with supporting documentation, and potentially withdrawing from the composition scheme and paying applicable taxes and penalties.
13 August 2025
Review e-Way Bills and Invoices: Confirm whether inter-state supply actually occurred Respond to the Notice: If it was a genuine error, explain the situation Show any supporting documentation (e.g., if the transaction was intra-state by mistake in e-way bill) File an application for withdrawal from composition scheme, if still active Pay differential tax, interest, and penalty, if applicable Consult a GST practitioner or CA to: Rectify returns Update registration (from composite to regular)