CMP-04: How to Opt Out of Composition Scheme

Updated on : Jul 07, 2021 - 10:44:12 AM

08 min read.

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 –

Wants to opt out of Composition Scheme voluntarily
Turnover exceeds limits
Fails to fulfill any of the conditions for availing the scheme.

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’.

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

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.