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CMA Intermediate · Direct and Indirect Taxation · Composition Levy

Under the CGST Rules, 2017, Gupta Foods Ltd, registered on the same PAN in Maharashtra and Gujarat, files an intimation withdrawing from the composition scheme for its Maharashtra place of business. What is the effect on its Gujarat place of business?

The withdrawal is deemed to be an intimation for all other places of business registered on the same PAN, so the Gujarat place of business also leaves the composition scheme. State-wise independent treatment is not allowed.

  1. ANo effect, as each State registration is treated independently
  2. BThe withdrawal applies only if the Gujarat turnover exceeds the threshold
  3. CThe withdrawal is deemed to be an intimation in respect of all other places of business registered on the same PANCorrect
  4. DThe withdrawal applies to Gujarat only after the officer issues FORM GST CMP-05

Explanation

The rules state that any intimation or application for withdrawal, or denial of the option, for a place of business in one State is deemed an intimation for all other places of business registered on the same Permanent Account Number. Hence Gujarat is also covered. Treating registrations independently contradicts this.

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