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My client purchases Rs. 3 crores and his turnover is Rs 84 lakss. will he come under regular dealer

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my client presently composite dealer. 25-26 his turnover is 84 lakhs and purchases is Rs.3 crores. will he come under regular dealer 

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Quick Summary
A composition dealer reports ₹84 lakh turnover but ₹3 crore purchases. Since eligibility depends on aggregate turnover, not purchases, the mismatch must be reconciled. If turnover exceeds the limit, shifting to the regular GST scheme becomes mandatory.

Since the client is presently under composition and showing turnover of ₹84 lakh, but purchases are ₹3 crore, the case needs careful reconciliation. Composition eligibility is based on aggregate turnover, not purchases alone. However, purchases of ₹3 crore against turnover of ₹84 lakh may indicate suppressed sales, closing stock, or other mismatch. If actual aggregate turnover exceeds the prescribed composition limit, he must shift to the regular GST scheme from the date of crossing the limit and comply with regular GST provisions.

Please verify opening stock, closing stock, purchase returns, exempt/non-GST supplies, and actual sales. If there is no proper explanation for such high purchases, the department may question the turnover declared under composition.


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