Complete GST lifecycle on one platform Complete GST lifecycle on one platform
Hyper-automation Hyper-automation
Smart reports & recon Smart reports & recon
Accurate filing Accurate filing

CMP-04: How to Opt Out of Composition Scheme

Updated on: Jul 7th, 2021

|

4 min read

social iconssocial iconssocial iconssocial icons

A Composition Dealer who wants to opt out of Composition Scheme has to file GST CMP-04. This form has to be filed by a Composition Dealer in 3 cases –

As per notification dated 01.01.2018, turnover in case of traders has been defined as ‘ Turnover of taxable supplies of goods’. GST CMP-04 has to be filed within 7 days from the date on which the taxpayer plan to opt out of Composition Scheme or is ineligible to be covered in the scheme.

A dealer has to opt out the day on which they fail to fulfill all the conditions to be complied by a Composition Dealer. For example: A Composition Dealers turnover exceeds the Rs 1.5 crore on 15th December 2017. The dealer will have to file CMP-04 by 22nd December 2017. CMP-04 has to be filed online on the GST Portal

Here is a step  by step Guide to File GST CMP-04 on GST Portal

Step 1: Login to GST Portal  

Step 2: Go to ‘Services’ > ‘Registration’ > ‘Application for Withdrawal from Composition Levy’.  

cmp-04

Step 3:  Select the reason for withdrawal from the drop down.  

cmp-04

Step 4: Select the ‘Verification’ check-box, ‘Name of Authorized Signatory’ and enter the ‘Place’ field. Click on ‘SAVE’ button and file your CMP-04 using DSC or EVC.   The ‘Taxpayer Type’ under ‘My Profile’ gets changed to ‘Regular’ on the successful filing of GST CMP-04.  

cmp-04
cmp-04
inline CTA
India’s Fastest and Most Advanced 2B Matching
Maximise ITC claims, use smart validations to correct your data and complete 2B matching in <1 minute
CONTENTS

Clear offers taxation & financial solutions to individuals, businesses, organizations & chartered accountants in India. Clear serves 1.5+ Million happy customers, 20000+ CAs & tax experts & 10000+ businesses across India.

Efiling Income Tax Returns(ITR) is made easy with Clear platform. Just upload your form 16, claim your deductions and get your acknowledgment number online. You can efile income tax return on your income from salary, house property, capital gains, business & profession and income from other sources. Further you can also file TDS returns, generate Form-16, use our Tax Calculator software, claim HRA, check refund status and generate rent receipts for Income Tax Filing.

CAs, experts and businesses can get GST ready with Clear GST software & certification course. Our GST Software helps CAs, tax experts & business to manage returns & invoices in an easy manner. Our Goods & Services Tax course includes tutorial videos, guides and expert assistance to help you in mastering Goods and Services Tax. Clear can also help you in getting your business registered for Goods & Services Tax Law.

Save taxes with Clear by investing in tax saving mutual funds (ELSS) online. Our experts suggest the best funds and you can get high returns by investing directly or through SIP. Download Black by ClearTax App to file returns from your mobile phone.

Cleartax is a product by Defmacro Software Pvt. Ltd.

Company PolicyTerms of use

ISO

ISO 27001

Data Center

SSL

SSL Certified Site

128-bit encryption