When a dealer wants to opt for Composition Scheme under GST, they have to intimate the government about it. This can be done by filing Form GST CMP-01 or Form GST CMP-02.
CMP-01 is a form to be filed by a migrated taxpayer who wants to opt for Composition Scheme. The due date for this was 1st August 2017 (1 month from July 2017).
A taxpayer who wants to opt for Composition Scheme for a financial year or during the middle of a financial year has to inform the government about their choice. This is to be done by filing GST CMP-02
If CMP-02 is filed in the middle of the financial year, the rules of the scheme are applicable from the month immediately succeeding the month in which CMP-02 is filed.
For example –
A taxpayer files CMP-02 in the month of December 2017. This means that the rules of the Composition Scheme will be applicable from January 2018.
Both CMP-01 and CMP-02 are required to be filed online on the GST Portal/ GSTN and the process to file is the same.
Update as on 23rd March 2021
The due date to file form CMP-02 for declaring eligibility to continue under the composition scheme for upcoming FY 2021-22 is 31st March 2021.
Update as on 3rd April 2020
- The time limit to opt into the composition scheme for the FY 2020-21 in form CMP-02 has been extended from 31st March 2020 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.
- The time limit to file form ITC-03 has accordingly been extended till 31st July 2020.
- The dealers can submit challan-cum-statement in form CMP-08 for the January-March 2020 quarter by 7th July 2020.
- 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.
Here is a Guide to File GST CMP-02 on GST Portal:
– Login to GST Portal
– Go to ‘Services’ > ‘Registration’ > ‘Application to Opt for composition Levy’.
– On this window read the ‘Composition Declaration’ and
‘Verification’ carefully and tick on the checkbox.
Choose the ‘Name of Authorized Signatory’ from the drop-down. Also, type the ‘Place’ and click on ‘SAVE’.
– If you are a Company or an LLP you can only submit the application with DSC. Any other registrant can use any of the three methods to submit the return.
– A pop up will open containing the warning. Click on ‘PROCEED’ here.
Once the application is submitted a success message is displayed. Also, an acknowledgment is sent to your registered email id and mobile.
After filing this form a Composition Dealer has to file GST CMP-03 within 90 days. Check out our Guide to File CMP-03 on GST Portal