Advisory for Opting in for Composition (Form GST CMP-02) for FY 2020-21

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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. Composition scheme shall be effective from 1st April 2020.

When to opt in for Composition:-

Prior to the commencement of the financial year.

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

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, turnover limit 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 (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.

Return /Payment : 

  • All composition taxpayers are required to pay GST liability in Form GST CMP-08 quarterly on or before 18th of the month succeeding quarter end. 
  • And file GSTR4 as return annually on or before 30th April of every financial year.

Annual return

  • Annual return in form GSTR 9A must be filed by the composition dealers once a year.

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