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 2022-23. 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 for FY 2022-23 is 31st March 2022.
Read Also: GST on Restaurant Services – Normal Scheme or Composition scheme?
Which Form to be filled for opting in Composition Scheme?
GST CMP-02 Form filing is required for opting the scheme. This is online Form and available in the GST Portal.
Which all persons can opt composition scheme?
- Assesses who do not want Input Tax Credit
- Supplier of goods whose aggregate turnover is below Rs. 1.5 crore in the previous financial year.
- Supplier of goods whose aggregate turnover is below Rs. 75 lakh in the previous financial year having place of business in the following states:
- Arunachal Pradesh,
- Manipur,
- Meghalaya,
- Mizoram,
- Nagaland,
- Sikkim,
- Tripura,
- Uttarakhand.
- The Taxpayers who supply services having aggregate turnover below Rs. 50 lakh in previous financial year.
- Person who does Intra-state outward supplies of goods
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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.
Read Also:GST Rule-86A: Input tax credit can be blocked under GST
How to opt Composition Scheme?
Following is the process for opting composition 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.
Check Also: GST Input Tax Credit Calculator
Key Point to Remember: Taxpayers who are switching from regular scheme to composition scheme for 2022-2023 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.
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How to file Form GST ITC-03?
- Click on services> Returns> ITC forms> GST ITC-03
- Now select GST ITC-03
Read Also: GST Calendar
What all returns a Composition dealer is required to file?
A composition dealer is required to file the following returns-
- Form GST CMP-08 quarterly and pay GST liability
- GSTR-4 and GSTR -9A annually.
After learning how to opt for composition scheme and how to file forms. If you have any other question then you can also Read-
Question and Answers on Composition Scheme under GST.
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