How to opt for Composition in GST?
Following are the persons eligible for getting registration as Composite Taxpayer:-
A regular taxpayer with an aggregate annual domestic PAN-based turnover less than as specified from time to time, the current limits are as given below:
- Rs. 1.5 Crore for normal taxpayers
- Rs. 75 lakh in the case of an eligible registered person, registered States, namely: –(i) Arunachal Pradesh, (ii) Manipur, (iii) Meghalaya,(iv) Mizoram,(v) Nagaland,(vi) Sikkim,(vii) Tripura,(viii) Uttarakhand:
- For taxpayers dealing in only services or mixed supplies, this limit is Rs. 50 Lakh
Who can Opt-in for Composition Scheme in GST
A regular existing Registered taxpayer who falls in the above turnover criteria can opt-in for composition by filling up Form GST CMP-02. For the financial year, anyone who opts for composition now will be registered w.e.f 1st Apr.2020.
Procedure to Apply for opting for Composition
- Log in to the GST Portal at https://www.gst.gov.in/
- In the services tab, choose Registration, Choose Application to opt for Composition Levy
- A form will open as – Application to Opt for Composition Levy. which will show our GSTIN, Legal Name of Business, Trade Name (if any), and Address of Principal Place of Business.
- Tick to the terms, declaration, authorization details.
- After selecting the Authorized Signatory and the Place, the options to submit the form will get activated.
- Select the desired way of verification – DSC, E-sign, or EVC
- Submit & Verify with the chosen mode.
Who are not eligible taxpayers:- Following taxpayers cannot opt for the Composition if they are involved in or making:-
- any supply of goods which are not liable to be taxed under this Act
- inter-state outward supplies of goods
- supplies through electronic commerce operators who are required to collect tax under section 52.
- a manufacturer of notified goods i.e. Ice cream and other edible ice, whether or not containing cocoa, all goods i.e. Tobacco and manufactured tobacco substitutes, Aerated Water and Pan Masala.
- a casual dealer
- a Non-Resident Foreign Taxpayer
- a person registered as Input Service Distributor (ISD)
- a person registered as TDS Deductor/Tax Collector
Compliances for Composite Taxpayer
Submission of Stock Intimation Details: Taxpayers opting in for composition needs to file stock intimation details if applicable.
Return / Payment: All composition taxpayers are required to file Form GST CMP-08 quarterly.