The eligible registered taxpayers, who want to opt-in for composition scheme for the FY 2021-22, need to file FORM GST CMP-02 application, on or before 31st March, 2021, post login on GST portal. The taxpayers may navigate as follows:
Log-in>Services > Registration > Application to opt for Composition Levy>Filing form GST CMP-02>File application under DSC/EVC
Once Form GST CMP-02 application is filed, the composition scheme will be available to the taxpayer, w.e.f. 1st April 2021.
The taxpayers already opted in for composition scheme earlier are not required to opt in again for FY 2021-2022.
Taxpayers who were regular taxpayers in previous FY, but are opting-in for composition scheme for 2021-22, must file Form GST ITC-03 for reversal of ITC on stocks of inputs, semi-finished goods and finished goods available with them, within 60 days from the effective date of opting in.
2. Who is eligible for opting-in for Composition Scheme:- Following Normal taxpayers, who don’t want to avail ITC facility, may opt for this scheme:
having aggregate turnover (at PAN level) upto ₹ 1.5 Crore in the previous FY.
having aggregate turnover (at PAN level) upto ₹ 75 lakh in the previous FY and who are registered in Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura & Uttarakhand.
supplying services and/or mixed supplies having aggregate turnover of previous FY upto ₹ 50 lakhs.
3. Who is not eligible for opting in composition scheme:
Suppliers of the goods/services who are not liable to pay tax under GST
Inter-State outward suppliers of goods/services
Taxpayers supplying goods through e-commerce operators who are required to collect tax under sec 52
The manufacturers of notified goods like Ice cream and other edible ice, whether or not containing cocoa, tobacco and manufactured tobacco substitutes, Pan Masala & Aerated water
Composition scheme opt-in requires filing FORM GST CMP-02 by the portal deadline to effect the composition levy promptly. Opting into the Composition Scheme for FY 2021-22 requires eligible taxpayers to file FORM GST CMP-02 by the portal deadline to have the composition levy apply from the effective date; existing composition taxpayers need not reapply. Taxpayers switching from regular registration must file FORM GST ITC-03 to reverse ITC on stocks within sixty days. Eligibility is limited by aggregate turnover thresholds and supply type; inter-state suppliers, certain e-commerce supplies, and manufacturers of notified goods are excluded.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Composition scheme opt-in requires filing FORM GST CMP-02 by the portal deadline to effect the composition levy promptly.
Opting into the Composition Scheme for FY 2021-22 requires eligible taxpayers to file FORM GST CMP-02 by the portal deadline to have the composition levy apply from the effective date; existing composition taxpayers need not reapply. Taxpayers switching from regular registration must file FORM GST ITC-03 to reverse ITC on stocks within sixty days. Eligibility is limited by aggregate turnover thresholds and supply type; inter-state suppliers, certain e-commerce supplies, and manufacturers of notified goods are excluded.
Note: It is a system-generated summary and is for quick reference only.
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