Proper Officer can cancel option to registered person :
Where the proper officer has reasons to believe that the registered person was not eligible to pay tax under section 10 or has contravened the provisions of the Act or these rules, he may issue a notice to such person in form GST CMP-05 to show cause within fifteen days of the receipt of such notice as to why option to pay tax under section 10 should not be denied – rule 4(4) of Composition Rules.
Upon receipt of reply to the show cause notice issued under rule 4(4) from the registered person in form GST CMP-06, the proper officer shall issue an order in form GST CMP-07 within thirty days of receipt of such reply, either accepting the reply, or denying the option to pay tax under section 10 from the date of option or from the date of the event concerning such contravention, as the case may be.