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Composition Scheme Rules under GST provide for all the procedural compliance w.r.t. intimation for Composition Scheme, the effective date for levy, conditions, and restrictions on the levy, validity of levy and rate of tax.
28th May 2021
As per the outcome of the 43rd GST Council meeting and CBIC notification,
(1) Interest relief has been provided for filing of CMP-08 for Jan-March 2021 quarter as per which, for any delay, interest is not charged until 3rd May, whereas 9% of reduced interest will be charged if filing is done thereafter until 17th June, and 18% later on.
(2) The due date to file GSTR-4 for FY 2020-21 is extended up to 31st July 2021.
(3) The maximum late fee for GSTR-4 that can be charged will be restricted to Rs.500 per return for nil filing and Rs. 2000 for other than nil filing.
1st May 2021
(1) The due date to file GSTR-4 for FY 2020-21 was extended from 30th April 2021 to 31st May 2021.
(2) Form CMP-08 that was due by 18th April 2021 for January-March 2021 has been given a relaxation in the interest charges. No interest for filing on or before 8th May, interest reduced to 9% between 9th May and 23rd May, but charged at 18% thereafter.
(3) The time limit to file ITC-03 by newly opted composition taxable persons for FY 2021-22 is extended up to 31st May 2021.
21st September 2020
The late fee has been reduced on filing pending Form GSTR-4 (Quarterly Return). The taxpayer is not required to pay the late fee if the tax liability is ‘NIL’. For other cases, the late fee has been restricted to Rs.500.
However, the pending GSTR-4 (quarterly) related to FY 2017-18 and 2018-19 has to be filed on or before 31.10.2020.
31st August 2020
The due date for furnishing Form GSTR-4 for the FY 2019-20 from 31st August 2020 to 31st October 2020.
21st July 2020
The facility to file GSTR-4 (Annual Return) is now available on GST portal.
13th July 2020
The due date to file GSTR-4 (Annual Return) has been extended to 31st August 2020 from 15th July 2020.
3rd April 2020
1. The time limit to opt into the composition scheme for the FY 2020-21 in form CMP-02 has been extended up to 30th June 2020. It applies for both taxpayers registered under section 10 of the CGST Act as well as the taxpayers opting for the scheme notified via CGST (Rate) notification no. 2/2019 dated 7th March 2019.
2. The time limit to file form ITC-03 has accordingly been extended till 31st July 2020.
3. The dealers can submit challan-cum-statement in form CMP-08 for the January-March 2020 quarter by 7th July 2020.
4. The time limit to file GSTR-4 annual returns for the FY 2019-20 by the composition dealers has been extended till 15th July 2020.
Any person being granted registration on a provisional basis (registered under VAT Act, Service Tax, Central Excise laws etc) and who opts for Composition Levy shall electronically file an intimation in FORM GST CMP-01, duly signed, before or within 30 days of the appointed date.
If intimation is filed after the appointed day, the registered person:
For fresh registration under the scheme, intimation in FORM GST REG- 01 must be filed.
Every registered person under GST and opts to pay taxes under Composition Scheme, must follow the following:
It depends on the fulfilment of conditions (discussed above), however, an eligible person for scheme may also opt out of the scheme by filing an application. In case Proper Officer has reasons to believe that taxpayer is not eligible for the scheme or contravened any Rules or ACT, he may issue show cause notice followed by an order denying the entailment of the scheme.
The rate of tax prescribed for different categories of registered persons have been described below:
Composition Scheme Rules under GST provides for submission of different forms meant for respective purposes followed by due date for submission of such forms, which are as follows:
|Form Required||Purpose||Due Date|
|Form GST CMP-01||To opt into the scheme by provisional GST registration holder(from VAT regime)||Prior to appointed date or within 30 days of the said date|
|Form GST CMP-02||Intimation of willingness to opt into the scheme for GST registered normal taxpayers||Prior to commencement of Financial Year|
|Form GST CMP-03||Details of stock and inward supplies from registered and unregistered persons||Within 90 days of the exercise of the option|
|Form GST CMP-04||Intimation of withdrawal from the scheme||Within 7 days of the occurrence of the event|
|Form GST CMP-05||Show cause notice on contravention of Rules or Act by a proper officer||On any contravention|
|Form GST CMP-06||Reply to show cause notice||Within 15 days|
|Form GST CMP-07||Issue of Order||Within 30 days|
|Form GST REG-01||Registration under Composition scheme||Prior to the appointed date|
|Form GST ITC-01||Details of inputs in stocks, semi-finished and finished goods||30 days of withdrawing option|
|Form GST ITC-03||Intimation of ITC available||Within 60 days of commencement of the financial year|
All the above-mentioned forms must be duly signed and filed electronically on Common Portal, either directly or through a Facilitation Centre notified by the Commissioner.
Any person who opts for the scheme will be deemed to have been opted for all the places of business having the same registered PAN. Hence, you may not choose any one of all the place of business to be registered under the scheme. Composition Scheme Rules under GST have been targeted to be strict and crisp for the persons availing the Composition Scheme.
Below is the downloadable format (PDF) prescribed by the government for registering as a composition dealer.