Advisory for Opting in for Composition i.e. filing of Form GST-CMP-02 for the F.Y 20-21 w.e.f. April 1, 2020

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Who can opt-in for Composition: Eligible existing Registered taxpayers can opt-in for composition, for the financial year 2020-21, by filling up Form GST CMP-02. Your composition scheme shall be effective from April 01, 2020.

How to opt-in for Composition: A registered taxpayer can apply for composition after login. The navigation to apply for composition is as given below:-

  • Log in to the Taxpayers’ Interface
  • Go to Services > Registration > Application to opt for Composition Levy
  • Fill the form as per the form specification rules and submit

Submission of Stock Intimation Details : Taxpayers opting in for composition need to file stock intimation details.
For more details click the link: https://tutorial.gst.gov.in/userguide/compositionpoc/index.htm

Who are eligible taxpayers:- Those taxpayers can opt for Composition Levy, if they are regular taxpayer with an aggregate annual domestic PAN-based turnover, less than as specified from time to time as given below:

  • Rs. 1.5 Crore for normal taxpayers
  • Rs. 75 lakh in the case of an eligible registered person, registered States, namely: –(i) Arunachal Pradesh, (ii) Manipur, (iii) Meghalaya,(iv) Mizoram,(v) Nagaland,(vi) Sikkim,(vii) Tripura,(viii) Uttarakhand:
  • For taxpayers dealing in only services or mixed supplies, this quantum is Rs. 50 Lakh.

Who are not eligible taxpayers:- Following taxpayers cannot opt for the Composition Levy, if they are involved in or making:-

  • any supply of goods which are not liable to be taxed under this Act
  • inter-state outward supplies of goods
  • supplies through electronic commerce operators who are required to collect tax under section 52.
  • a manufacturer of notified goods .
  • a casual dealer
  • a Non-Resident Foreign Taxpayer
  • a person registered as Input Service Distributor (ISD)
  • a person registered as TDS Deductor/Tax Collector

Return /Payment : All composition taxpayers are required to file Form GST CMP-08 quarterly (for details click link https://tutorial.gst.gov.in/userguide/returns/index.htm#t=Manual_CMP02.htm ).

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