The Goods and Services Tax Network (GSTN) has issued an Advisory on Opting-in for Composition Scheme for the Financial year 2021-22.
How to opt-in for Composition Scheme:
The eligible registered taxpayers, who want to opt-in for the 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 the Form GST CMP-02 application is filed, the composition scheme will be available to the taxpayer, w.e.f. 1st April 2021.
The taxpayers who already opted in for the composition scheme earlier are not required to opt-in again for FY 2021-2022.
Taxpayers who were regular taxpayers in the previous FY, but are opting-in for the 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.
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) up to Rs. 1.5 Crore in the previous FY.
- having aggregate turnover (at PAN level) up to Rs. 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 up to Rs. 50 lakhs.
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