GSTN issues advisory for opting in for Composition

GSTN issues advisory for opting in for Composition

Advisory for Opting in for Composition (filing Form GST CMP-02)

Who can opt in for Composition: Eligible existing Registered taxpayers can opt in for composition, for the financial year 2020-21, by filling up Form GST CMP-02. Your composition scheme shall be effective from 1st April 2020.

How to opt in for Composition: A registered taxpayer can apply for composition after login. The navigation to apply for composition is as given below:-

Who are eligible taxpayers: Those taxpayers can opt for Composition, who are regular taxpayer with an aggregate annual domestic PAN-based turnover less than as specified from time to time 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 quantum is Rs. 50 Lakh.

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

Submission of Stock Intimation Details: Taxpayers opting in for composition need to file stock intimation details.

For more details click the link:

Return /Payment: All composition taxpayers are required to file Form GST CMP-08 quarterly (for details click link ).

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Disclaimer:The article or blog or post (by whatever name) in this website is based on the writer’s personal views and interpretation of Act. The writer does not accept any liabilities for any loss or damage of any kind arising out of information and for any actions taken in reliance thereon.  It is prepared based on understanding of provisions as stood applicable as on date. Also, and its members do not accept any liability, obligation or responsibility for author’s article and understanding of user.

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