QUESTION

Last Year Financial Year 2018/19 Main Composition Scheme vale Hamare Dealer ka Turnover 1.06 Cr Regular GSTR 4 main chala gaya hai * Last Year Limit 1 Cr Ki thi * Mistake ho gayi hai Mistake Thik karne ke liye hum do Raste soch rahe hai 1. Return main Galti ho gayi thi.... aisa dikhaye aur 10.00.000/- 10 Lacs Ka Turnover Annual Main Kam Dikhaye Aur Uske hisab se Books of A/c & Bills Ets Thik kar le 2. Sales Return Pure Sal main Dikhana Bhool gaye hai aisa dikha ke Net Turnove Less Then 1 Cr Karke Annual Return Uske Hisab se Bhar de Kon sa Rasta Dhik Rahega Composition Main Net Turnover Sales Return Ke bad Ka 1 Cr ( 1.06 Cr Less- Sales Return 7 Lacs) Ke Niche Ho To Turnover ki Definetion Janna hai Composition Scheme main - Party aur uske advisor Sales Return Dikhane ko bol Rahi hai Kya Kare ?

ANSWER
Facts of the case:
Composition dealer file GSTR 4 showing Turnover of 1.06 Cr. However your question is ambiguous about true colours of the case specifying whether 1.06 Cr is the actual turnover or the actual turnover was below the limit of 1 Cr. and GSTR - 4 was incorrectly filed.

Law Applicable:
1. As per the proviso to Section 39(9),
"Provided that no such rectification of any omission or incorrect particulars shall be allowed after the due date for furnishing of return for the month of September or second quarter following the end of the financial year to which such details pertain , or the actual date of furnishing of relevant annual return, whichever is earlier"

2. As per section 10(3):
"The option availed of by a registered person under sub-section (1) shall lapse with effect from the day on which his aggregate turnover during a financial year exceeds the limit specified under sub-section (1)."

Interpretation:
As per proviso to Section 39(9), any correction related to the financial year can be done up to the last date of filing of return of the second quarter of the next FY or the date of filing of the annual return whichever is earlier. Therefore your time limit for making any corrections related to FY 2018-19 can still be made as the correction window for the same is open till the due date of return for the second quarter.

Rectification can be done as follows:
I. Reducing the sales outward as the amount was incorrectly entered
II. Filing missing Credit notes and showing this as sale return.

However in the second case, the correction would be erroneous if credit notes are not really maintained.
Therefore, it is suggested to declare a true and fair picture without evasion of tax.

Also, Section 10(3) states that the option to avail the composition scheme shall lapse as soon as the limit of 1 Cr is crossed. In case the actual turnover is Rs. 1.06 Cr then this has resulted in violation of law and would attract interest and penalty. If your case falls under this situation then it is advice to submit the tax, interest and penalty.

Conclusion:
If your true turnover is 1.06 Cr. then Comp levy ceases. If your turnover was really under 1 Cr and error was made only in GSTR - 4 then the same can be rectified in as mentioned above.