A registered person paying tax under Section 10 of the CGST Act, 2017 finds that its aggregate turnover in the current financial year has crossed the composition ceiling. From when does its…
Question and options
A registered person paying tax under Section 10 of the CGST Act, 2017 finds that its aggregate turnover in the current financial year has crossed the composition ceiling. From when does its composition option lapse?
From the first day of that financial year
From the first day of the next financial year
From the day on which its turnover crosses the ceiling
From the day it files an intimation of withdrawal
Answer and explanation
Section 10(3) of the CGST Act, 2017 provides that the option lapses with effect from the day on which aggregate turnover during the financial year exceeds the limit. The person then files an intimation of withdrawal under Rule 6(2) of the CGST Rules, 2017, but the lapse does not wait for it, nor for the next year, nor is it backdated to the start of the year.
Practice for these exams
-
All India Bar Examination (AIBE)
Subject revision
See pack details on LawMint.net -
IIT Kharagpur LL.M. Entrance
Subject revision
See pack details on LawMint.net -
CLAT PG
Subject revision for a passage-based exam
-
AILET PG
Subject revision
Related exam syllabi
More solved explanations in GST - levy, supply, input tax credit, registration & returns
- What invoice-age limit applies to special input tax credit claims under Section 18(1) and (2) of the CGST Act?
- Goods are to move by road under an e-way bill. Under Rule 138(10) of the CGST Rules, 2017, from when is the period of validity of the e-way bill counted?
- As at 10 November 2026, at what rate of central tax must a notified deductor deduct tax at source under Section 51(1) of the CGST Act, 2017 from the payment to a…
- Under Section 16(4) of the CGST Act, 2017, by when must a registered person take input tax credit on an invoice relating to a financial year, assuming no special…
- A registered person sells used machinery on which it took input tax credit. Under Section 18(6) of the CGST Act, 2017, what must it pay?