Advisory for Opting in for Composition (filing Form GST CMP-02) 18/02/2020
Who can opt in for Composition :-
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.