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.
Attention GST registered taxpayers! 31st March 2018 is deadline to opt into Composition for FY 2018-19
For: Any GST registered taxpayer who want to opt for the Composition scheme for FY 2018-19;
31st March 2018 is the deadline to file the intimation in Form GST CMP-02 to opt into composition scheme for the FY 2018-19.
Follow our Step-by-step Guide to file CMP-02
Also, furnish statement in form ITC-03 within 60 days of commencement of the FY 2018-19 to declare the ITC claim that has to be reversed on inputs/capital goods in stock, in semi-finished or in finished goods.
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.
