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We are well versed with the benefits of opting Composition Scheme under Goods and Services Act. With this financial year ending, many taxpayers are willing to convert themselves from normal scheme to Composition scheme in FY 2020-21.
Here’s what you need to know before taking the final call.
Procedure to opt the Composition Scheme:
- Form GST CMP-02 is required to be filed by the eligible taxpayers who want to go for this scheme in FY 2020-21. This application form is available on GST Portal.
- The aforesaid application form needs to be filed upto 31st March,2020 on common portal. The taxpayers who are already registered under Composition scheme in the previous FY need not file the application form again for FY 2020-21.
- You simply need to follow these steps given in next point for filing GST CMP-02.
- Log in–Services–Registration–Application to opt for Composition Levy–Form GST CMP-02 will appear–File the same using EVC/DSC.
- After successful filing of the application form, you can avail the benefits of composition scheme from 1st April, 2020.
- Regular taxpayers willing to switch to Composition scheme from FY 2020-21 shall be required to file ITC-03. This is required for reversal of Input Tax Credit remaining in stocks of Inputs, semi-finished goods and finished goods as per the period specified under Rule 3(3A) of CGST Rules,2017.
That’s all you need to do for opting Compositing Scheme from FY 2020-21. We will discuss the eligibility in another article.
Hope this helps.