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CMA Intermediate · Direct and Indirect Taxation · Composition Levy

A proper officer believes a composition dealer was ineligible for the scheme and issues a show-cause notice in FORM GST CMP-05. Under the Rules, within how many days must the dealer show cause, and within how many days of receiving the reply must the officer pass the order in FORM GST CMP-07?

The dealer must show cause within fifteen days of receiving the CMP-05 notice, and the proper officer must pass the CMP-07 order within thirty days of receiving the reply. The order either accepts the reply or denies the composition option.

  1. AShow cause within 30 days; order within 15 days
  2. BShow cause within 15 days; order within 30 daysCorrect
  3. CShow cause within 15 days; order within 15 days
  4. DShow cause within 7 days; order within 30 days

Explanation

Rule 6(4) gives fifteen days from receipt of the notice for showing cause. Rule 6(5) requires the officer to issue the order in CMP-07 within thirty days of receiving the reply. The option reversing the periods is therefore wrong.

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