The GSTAT, Hyderabad Bench in Sri Parameshwara Bricks v. State Tax Officer & Ors. [Appeal Nos. APL/126/HYD/2026 & APL/26/HYD/2026, Common Order Nos. 001/HYD/2026 & 002/HYD/2026 dated August 20, 2026] upheld the order of the First Appellate Authority denying the benefit of the composition scheme to a manufacturer of red clay bricks whose aggregate turnover had exceeded the threshold of Rs. 1.50 crore, holding that the option under Section 10(3) of the Central Goods and Services Tax Act, 2017 (“the CGST Act”) lapses automatically by force of statute from the day on which the threshold is breached and that a plea of inadvertence or bona fide belief cannot revive the option. However, the Tribunal further held that, since a composition taxpayer is barred under Section 10(4) of the CGST Act from collecting any tax from the recipient, the value declared in the invoices must be treated as inclusive of tax, and the differential tax on the post-lapse supplies is required to be recomputed by applying the cum-tax formula prescribed under Rule 35 of the Central Goods and Services Tax Rules, 2017 (“the CGST Rules”), even though the Assessee had never claimed such benefit before any authority.
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