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What happens If I opt for composition levy when...

What happens If I opt for composition levy when clearly, I am not eligible to do so? Is there any penal implications?


What happens If I opt for composition levy when clearly, I am not eligible to do so? Is there any penal implications?


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Chiranjibi Jul. 19, 2018

You have committed an offence under GST by opting for composition levy. You will pay 100% penalty over the tax you were liable to pay.

Section 10(5) provides that if a person who has paid under composition levy is found as not being eligible for compounding then such person shall be liable to penalty to an amount equivalent to the tax payable by him under the provisions of the Act i.e. as a normal taxable person and that this penalty shall be in addition to the tax payable by him.


What happens If I opt for composition levy when clearly, I am not eligible to do so? Is there any penal implications?


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