Composition scheme - violation of conditions

Aditi Bhardwaj (Practising Chartered Accountant & Mentor for CA students)   (659 Points)

14 April 2019  

Dear Experts, 

I have a situation where a composition dealer did not file GST returns for the full year 2018-19. Also, this person issued all invoices to registered GST customers at 18% tax instead of following composition rates. Now, owing to this mistake of wrong levy of tax, I wanted to change from composition to regular and file regular GST returns under the normal scheme, but the portal does not allow to change the scheme with retrospective effect. 

  • I can't ask the customers to reverse all the input credit because they would have all filed their GSTR 3B considering the credit 
  • I am not able to change from composition to regular on the portal to file regular GSTR 3B and GSTR 1

I am at a deadlock situation here. What is the resolution in such a case? Should I meet the officer to resolve this? Will I be exposed to a penalty situation if I discuss this with the Officer. Is there a way out without taking this to the authorities in person? 

Please help. Thank you in advance.