Last date to Opt-Composition Scheme for F.Y. 2020-21

Due to pandemic COVID-19 Government extend the last date of opting composition scheme i.e. 30-06-2020. To read full article click here

Recently CBIC issue an advisory for opting-in composition scheme for F.Y. 2020-21 which is as under

Advisory on Opting-in Composition Scheme for 2020-21 by filing FORM GST CMP-02

A. How to opt-in Composition Scheme:

  • The application for opting-in composition scheme for the financial year 2020-21 has been made available on GST Portal.
  • The taxpayers who are already in composition scheme in previous financial year are not required to opt in for composition again for FY 2020-2021.
  • The eligible registered taxpayers, who want to opt-in for composition scheme for the Financial Year 2020-2021, may file FORM GST CMP-02 application upto 31st March 2020 on common portal.
  • The taxpayers should navigate as follows:

Log-in > Services > Registration > Application to opt for Composition Levy > filing form GST CMP-02 > file application under DSC/EVC.

  • Once CMP-02 application is filed, the composition scheme shall be available to the taxpayer w.e.f. 1st April 2020.
  • The taxpayers who were a regular taxpayer in previous financial year but are opting-in composition scheme for 2020-21 should file ITC-03 for reversal of ITC credit on stocks of Inputs, semi-finished goods and finished goods available with him with in a period as prescribed under Rule3(3A) of CGST Rules, 2017.
  • For more information, taxpayers may consult user-manual available at GST Portal. Following links may also be used for opening user manual:

B. Return/Payment:

  • All taxpayers opting in for composition shall file FORM GST CMP-08 quarterly and pay GST and shall file GSTR-4 annually.

C. Who are eligible taxpayers for opting-in for Composition Scheme:

Following taxpayers may opt for this scheme:

  • The normal taxpayers having aggregate turnover (at PAN level) below Rs.1.5 Crore in the previous financial year, who doesn’t want to avail ITC facility,
  • The normal taxpayers having aggregate turnover (at PAN level) below Rs.75 lakh in the previous financial year who are situated in following states:
    1. Arunachal Pradesh,
    2. Manipur, Meghalaya,
    3. Mizoram,
    4. Nagaland,
    5. Sikkim,
    6. Tripuraand
    7. Uttarakhand:
  • The normal taxpayers supplying services and/or mixed supplies having aggregate turnover of last financial year below Rs.50 lakhs.

D. Who are not eligible taxpayers for opting-in for Composition Scheme

  • Input Service Distributor (ISD)
  • Non-resident taxable person
  • Inter-state outward supplier of goods/services
  • Government authority, Local authority, Government agency or such person as may be mandated by the Government to deduct TDS under section 51.
  • E-commerce operator liable to collect TCS under section 52.
  • Casual taxpayer
  • The manufacturers of notified goods e.g.
    • Ice cream and other edible ice, whether or not containing cocoa,
    • All goods, i.e. Tobacco and manufactured tobacco substitutes
    • Pan Masala,
    • Aerated water