GST composition scheme : How to apply for Composition Scheme in GST for FY 2020-21?
Composition scheme in Goods and Service Tax (GST) Regime is an easy and simple scheme introduced by the government for the small taxpayers so that they can get rid of complex formalities and pay tax at a fixed rate on turnover.
The option for availing composition scheme is now available at GST Portal for the year 2020-21. Taxpayers who are already registered under this scheme are not required to opt in again for current year. This article contains the answers of doubts or question on the GST Composition scheme.
What is the Due date for opting in Composition Scheme?
The due date for opting the composition is extended to 30th June 2020 due to COVID-19. (before last date was 31st March 2020)
Which Form to be filled for opting in Composition Scheme?
GST CMP-02 Form filing is required for opting the composition scheme. This is online Form and available in the GST Portal.
Eligible taxpayers who can opt in composition scheme-
- Assesses who do not want Input Tax Credit
- Taxpayers whose aggregate turnover is below Rs. 1.5 crore in the previous financial year.
- Taxpayers whose aggregate turnover is below Rs. 75 lakh in the previous financial year having place of business in the following states:
- Arunachal Pradesh,
- Taxpayers who supply services having aggregate turnover below Rs. 50 lakh in previous financial year.
Who are not eligible for this scheme?
- Non- GST goods/services supplier (e.g. Petroleum Products),
- E-Commerce operators,
- Inter-State supplier of goods/services,
- Casual Taxpayer,
- Non-Resident Foreign Taxpayers,
- Input service Distributer (ISD),
- TDS Deductor/Tax Collector,
- Manufacturer of notified goods like
- Ice cream & other edible ice
- Tobacco and manufactured tobacco substitutes
- Pan Masala
- Aerated water.
How to opt Composition Scheme?
Following is the process for opting composition scheme under GST-
- Login to the GST portal.
- Go to Services > Registration > Application to opt for Composition Levy.
- Fill the displayed form which is GST CMP-02 with DSC/EVC.
In category of Registered Person, a Registered person has three option to choose from-
- Manufacturers who are eligible for opting composition scheme.
- Supplier having Restaurant business.
- Other than 2 and 3 above
After filling form CMP-02, the composition scheme will be available to the taxpayer.
Key Point to Remember: Taxpayers who are switching from regular scheme to composition scheme for 2020-2021 must file form GST ITC-03. It is the form that contains the details of stock held by him on the day immediately prior of opting this scheme. This will require reversal of input tax credit held in stocks of inputs, semi-finished goods, finished goods and Capital goods available with him. The due date for filing GST ITC-03 is also extended to 31st July, 2020, due to COVID-19.
How to file Form GST ITC-03?
- Click on services> Returns> ITC forms> GST ITC-03
- Now select GST ITC-03
What all returns a Composition dealer is required to file?
A composition dealer is required to file the following returns-
After learning how to opt for composition scheme and how to file forms. If you have any other question then you can also Read-
The author of above article is Punit Chaplot.
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