Answer

1. F

   Facts

   Composition ends from the day aggregate turnover crosses the limit during the year. You must intimate in CMP-04 within 7 days and move to the regular scheme. From that day you charge GST and can take ITC.

2. P

   Provisions and law

   • Rule 6, CGST Rules 2017Validity of composition, withdrawal in CMP-04, intimation within 7 days on losing eligibility, and CMP-05 to CMP-07 for denial
   • Sec 10(1), CGST Act 2017Eligible registered persons with aggregate turnover up to Rs 1.5 crore in the preceding year may opt to pay tax at composition rates
   • Sec 18(1)(c), CGST Act 2017On leaving composition, ITC is allowed on stock and capital goods held on the day before
3. A

   Analysis

   Example: turnover reaches Rs 1.5 crore on 12 December. From that day issue tax invoices and file GSTR-1 and GSTR-3B. File CMP-04 by 19 December and claim ITC on stock held on 11 December through ITC-01 within 30 days. Pay composition tax up to 11 December in CMP-08 and file GSTR-4 for the period.

4. C

   Conclusion

   1. 1Track cumulative turnover monthly
   2. 2On crossing, switch billing to tax invoices
   3. 3File CMP-04 within 7 days
   4. 4File ITC-01 for stock within 30 days
   5. 5Start regular returns from that date

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.