Ques: Our Client has received and advances and it is being forfeited as liquidated damages. Please specify the GST provisions on such transactions

Ans: Liquidated damages are outside the GST ambit. They are not taxable. Rather an advance I believe it must be security deposit.

Ques: What all can the proper officer ask in the name of query? Can he ask for last 3 ITRs, Balance sheet, and bank statements etc. Whether there is any checklist of documents which can be asked by the officers ??

Ans: During ASMT 10 It can not ask for these papers. Refer circular no 2/2022. While in audit and other investigation he can ask For these papers

Ques: The GST Registration Cancellation of one Composition Dealer Applied on 18.01.2025 and Canellation Order issued by GST Department on 18.02.2025, but till now NO OPTION came to file the Final Return of above Composition Dealer. Is there any liability on Assessee to do anything. Please guide me.

Ans: As per Section 45, every registered person who is required to furnish a return under sub-section (1) of Section 39 and whose registration has been cancelled shall furnish a final return.

And, as per Section 39, a person paying tax under Section 10, i.e. composition levy scheme, is not required to furnish a return under this section.

Therefore, when Section 45 and Section 39 are read together, it is clear that a composition dealer is not obligated to furnish a final return (GSTR-10) upon cancellation of registration.