Get 3 Yrs of CCI Pro Membership at Greater Value. Subscribe Now!

Crossing of turnover after composition limit

558 views

Save Share

Prem Kewalramani

234 Points Posted on 09 June 2023

One of the Service Provider is under composition scheme and turnover is below 50 lacs but this current year very likely the Turnover may cross 50 lacs,

my concern and querry

1. What are the actions are to be taken after T O crosses.

2.The rate of Tax thereafter , and the legal procedure of information to be given on Portal

3. And whether ITC will be available after that Date .

please clear my Doubts/ Querries

Replies (4)

Quick Summary

If your business is under the GST composition scheme and your turnover is approaching the 50 lakh limit, it's crucial to understand the next steps. You must inform the authorities in the month you cross the limit and opt out of the composition scheme by filing CMP-04 within 7 days. After this, you'll be subject to regular tax rates and can claim Input Tax Credit (ITC) on stock and capital goods by filing ITC-01.

sabyasachi mukherjee

Profession

19978 Points Posted on 09 June 2023

Registered or not
compliance

Prem Kewalramani

234 Points Posted on 09 June 2023

Registered in GST under composition scheme

CA Ashish Joshi

181 Points Posted on 09 June 2023

Intimation should be given in the month in which the Turnover Crosses the limit. From that month, all ITC can be claimed based on the justification of crossing Turnover. Keep all records for any future inquiry.

Pankaj Rawat

GST Practitioner

29904 Points Posted on 10 June 2023

1. Need to opt out of Composition Scheme by filing for CMP-04 online on portal within 7days (Rule 6)
2. Rate will as per Regular scheme & can file ITC 01 & can claim ITC on stock & capital goods.(Rule 40)
3. Yes ITC will be available from date of filing CMP'04