# Validity, Withdrawal & Denial of Composition
## (i) Automatic lapse — when conditions cease
- Option remains valid as long as conditions are met.
- Lapses immediately if aggregate turnover crosses prescribed limit (₹1.5 cr / ₹75 lakh / ₹50 lakh).
- On lapse, the taxpayer must:
- Pay tax under normal scheme u/s 9(1)
- Issue tax invoices for taxable supplies
- File intimation of withdrawal within 7 days of the triggering event
- Effective date of withdrawal: as indicated in intimation, but not earlier than the beginning of the FY in which the intimation is filed.
## (ii) Voluntary withdrawal
- File prescribed application.
- Effective from date specified in application, but not before commencement of FY in which filed.
## (iii) Denial by Proper Officer (compulsory exit)
1. Officer issues Show Cause Notice (SCN) if he believes the person is ineligible / has contravened.
2. After considering reply, officer may accept or deny composition.
3. Denial may be retrospective, fixed by the authority.
4. Cap: effective date cannot be prior to the date of contravention.
## Stock statement on exit
- Furnish statement of inputs and inputs contained in semi-finished / finished goods held in stock on the date of withdrawal/denial.
- Time limit: 30 days from date of withdrawal / order of denial.
## Uniformity rule
Intimation/application for withdrawal or denial in respect of any place of business applies to all other GSTINs under the same PAN.