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 up to 31 st 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 taxpayers 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 within a period as prescribed under Rule 3 (3A) of CGST Rules, 2017.
All taxpayers opting in for composition shall file FORM GST CMP 08 quarterly and pay GST and shall file GSTR 4 annually.
Who are eligible taxpayers for opting in for Composition 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:-
•Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim,
Tripura and Uttarakhand:
• The normal taxpayers supplying services and/or mixed supplies having aggregate turnover of last financial year below Rs 50 lakhs.