Advisory for Opting in for Composition (filing Form GST CMP-02)

18/02/2020

Who can opt in for Composition : Eligible existing Registered taxpayers can opt in for composition, for financial year 2020-21, by filling up Form GST CMP-02. Your composition scheme shall be effective from 1st April 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
• For more details click the link: https://tutorial.gst.gov.in/userguide/compositionpoc/index.htm?key=toc1&ref=.

Who are eligible taxpayers:- Those taxpayers can opt for Composition, who 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, 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 i.e. Ice cream and other edible ice, whether or not containing cocoa, all goods i.e. Tobacco and manufactured tobacco substitutes, Aerated Water and Pan Masala.
• a casual dealer
• a Non-Resident Foreign Taxpayer
• a person registered as Input Service Distributor (ISD)
• a person registered as TDS Deductor/Tax Collector

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?key=toc4&ref=.

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 ).