GST CMP-07 explained: the officer's decision on composition

Time limit

Under Rule 6(5), the order is to be issued within 30 days of receipt of the reply. Check the portal for the order and any linked demand notice.

If the reply is accepted

You continue as a composition taxpayer. Keep the order with your records and keep monitoring turnover and the nature of supplies so the issue does not arise again.

If the option is denied

The order states the date from which composition is denied. From that date, you are treated as a normal taxpayer.

The denial date matters most. The order may deny the option from the date of the original option or from the date of the event, and the difference can change the tax amount significantly.

• Tax at normal rates becomes payable on supplies from that date, less composition tax paid, through demand proceedings
• Penalty under Section 10(5) may be imposed
• Credit on stock and capital goods may be claimed through ITC-01 within 30 days of the order, subject to conditions
• Returns as a normal taxpayer must be filed going forward

Appeal

A denial can be appealed in APL-01 within 3 months of communication, with one more month on sufficient cause. Where tax is determined, a pre-deposit of 10% of the disputed tax applies. Further appeal lies to the GST Appellate Tribunal.

Next steps

Read the order and its findings on each ground. If the denial date is earlier than justified, that point alone can be the basis for appeal. A professional can assess the order, calculate exposure and file the appeal or ITC-01.

Get it handled for you

Facing an order you disagree with? We draft and file the appeal with the pre-deposit and attend the hearing as your authorised representative. Call or WhatsApp +91 63677 44602, or use the form below.

This guide explains the law in general terms as of October 2026. Time limits and requirements can depend on the facts of your case and on the notice you received.