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CMA Intermediate · Direct and Indirect Taxation · Composition Levy

A proper officer believes a registered person was not eligible for composition levy and issues a show-cause notice in FORM GST CMP-05. The person replies in FORM GST CMP-06. As per the CGST Rules, 2017, what is the time limit for the officer's order in FORM GST CMP-07 and the time allowed for filing the stock statement in ITC-01 after the order?

The officer must pass the CMP-07 order within thirty days of receiving the reply, and the person may furnish the ITC-01 stock statement within thirty days from the date of that order. The fifteen-day period applies to replying to the notice.

  1. AOrder within 15 days of the reply; ITC-01 within 7 days of the order
  2. BOrder within 30 days of the reply; ITC-01 within 30 days of the orderCorrect
  3. COrder within 30 days of the reply; ITC-01 within 7 days of the order
  4. DOrder within 15 days of the reply; ITC-01 within 30 days of the order

Explanation

The notice allows 15 days to show cause, but the officer's order in CMP-07 must be issued within thirty days of receiving the reply. The ITC-01 stock statement is due within thirty days of the date of the order. The 15 days and 7 days belong to the notice reply and the CMP-04 intimation respectively.

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