Tax Official has initiated Compulsory Withdrawal from Composition Levy. What will happen in case, I have applied for new registration with same PAN?
If any new registration application is filed mapped to the same PAN and is pending for processing with the Tax officer, which is not approved or rejected, the decision of the approval/ rejection of proceeding for Compulsory withdrawal from Composition levy will also apply to the new GSTIN as applicable.
After issue of “Order for Compulsory Withdrawal from Composition levy”, any new Registration (GSTIN) granted over the same PAN (having effective date of Registration earlier than withdrawal date), will be treated as “Composition” till the date of withdrawal of composition and deemed to be flagged as “Normal” from the date of withdrawal of composition.
For example: If the effective date of Registration is 2nd Jan 2019 and withdrawal from composition date is 11th Jan 2019. In such case, the GSTIN will be treated as Composition till 11th Jan 2019 and Normal from 12th Jan 2019.
What will happen if a Tax Official Compulsory Withdraw a taxpayer from Composition Levy?
Once a Tax Official Compulsory Withdrawal a taxpayer from Composition Levy:
- GST Portal will generate an order for compulsory withdrawal from composition levy.
- Taxpayer as well as all GSTINs mapped to the same PAN will be intimated about compulsory withdrawal via e- mail and SMS.
- GST Portal will remove the ‘Composition’ flag, against all the GSTINs mapped to the same PAN.
- Information about compulsory withdrawal will be passed on to the concerned State/Centre Tax Authorities of such GSTINs.
What will happen if a Tax Official drops the proceedings for Compulsory Withdrawal of a taxpayer from Composition Levy?
Once a Tax Official drops the proceedings for Compulsory Withdrawal of a taxpayer from Composition Levy:
- GST Portal will generate an order for dropping of proceedings.
- Taxpayer will be intimated about dropping of proceedings via e- mail and SMS.
- Information about dropping the proceedings will be passed on to the concerned State/Centre Tax Authorities of such GSTINs.
What are the various statuses for Compulsory Withdrawal of a taxpayer from Composition Levy?
Various statuses for Compulsory Withdrawal of a taxpayer from Composition Levy are:
- Pending for Clarification: On issuance of SCN and pending reply by taxpayer
- Pending for Order: On receipt of reply to SCN and pending order by Tax Official
- Order Issued: On passing of Order for Withdrawal by Tax Official
- Proceeding Dropped: On passing of Order by Tax Official for dropping of SCN