Answer

1. F

   Facts

   Once turnover crosses the composition limit during the year, you leave the scheme from that day and become a regular taxpayer. GSTR-4 covers the period up to then.

2. P

   Provisions and law

   • Sec 10, CGST Act 2017Composition levy: turnover limits, rates, conditions and no ITC
   • Rule 62, CGST Rules 2017Quarterly CMP-08 statement and annual GSTR-4 return for composition taxpayers
3. A

   Analysis

   Sec 10 sets the limit at ₹1.5 crore for most goods traders and manufacturers, lower in some States, and ₹50 lakh for service providers opting under Sec 10(2A). The rules ask for an intimation in CMP-04 within 7 days of crossing. Example: crossed on 12 January 2026; regular tax applies from then, GSTR-4 covers April 2025 to that date.

4. C

   Conclusion

   1. 1Note the date turnover crossed the limit.
   2. 2File CMP-04 within 7 days.
   3. 3Start issuing tax invoices and file regular returns.
   4. 4Claim ITC on stock through ITC-01 within the time allowed.
   5. 5File GSTR-4 for the composition period.

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