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GST Form CMP-02

GST Form CMP-02

GST Form CMP-02

The Government has released an advisory dated 18th February 2020 to file Form GST CMP-02 for Opting-in Composition Scheme for Financial Year 2020-21. The Composition Scheme was introduced by the Government for small businesses, to make GST filing more cost-effective and easy for them. The small businesses opting in of the Composition Scheme have to pay GST at a fixed rate of their turnover and file the GST returns on a quarterly basis.

More details are available in the guide on Composition Scheme and on opting in and out of the Composition Scheme.

Current Advisory

The taxpayers who are already in composition scheme in a previous financial year need not opt-in for composition again for the financial year 2020-2021. if any GST registered taxpayer opts for the Composition Levy, they had to file GST Form CMP-02 at GST Portal on or before 1st April 2020.

GST CMP-02 Form

The GST CMP-02 is an online form that auto-populates details of the Business such as

  • GSTIN
  • Legal Name
  • Trade Name
  • Address of Principal Business
  • Nature of Business and Jurisdiction

This is followed by two fields that the taxpayer must click on:

  • Checkbox for Composition Declaration
  • Checkbox for Verification
    • Dropdown for selection of Authorized Signatory
    • Input textbox for Place from where an online form is being filed.
    • Submit

Dates for Opt-in for Composition Scheme

The eligible registered taxpayers, who want to opt-in for composition scheme for the Financial Year 2020-2021, need to file Form GST CMP-02 application up to 31st March 2020 on the common portal.

Steps to file Form GST CMP-02:

The taxpayers should log in to the GST portal and then

  • Click on Services
  • Choose Registration
  • Choose “Application to opt for Composition Levy”
  • Then file Form GST CMP-02
    • Business Details will be auto-populated by the system.
    • Click on Composition Declaration checkbox to pledge to abide by the conditions and restrictions for Taxpayers who are under the Composition Levy.
    • Click on the Verification checkbox (below the Composition Declaration checkbox) stating that all the information given is true and that nothing has been concealed from the authority.
    • Select the Authorized Signatory from the dropdown menu and enter the Place from where the form is filed.
    • Click on Submit with DSC or Submit with EVC buttons to complete the filing of GST CMP-02

Once GST CMP-02 application is filed, the composition scheme will be available to the taxpayer w.e.f. 1st April 2020.

Filing ITC-03 for past regular taxpayers

The taxpayers who were regular taxpayers in previous financial year but are opting-in composition scheme for Financial Year 2020-21 should also file ITC-03 for reversal of ITC on stocks of Inputs, semi-finished goods and finished goods available with them within a period as prescribed under Rule, 3(3A) of CGST Rules, 2017, i.e., within a period of 180 days from the day on which such person commences to pay tax under Section 10, provided that the said persons shall not be allowed to furnish the declaration in Form GST TRAN-1 after the statement in Form GST ITC-03 has been furnished.

Return /Payment

All taxpayers opting in for composition need to file GST CMP-08 quarterly and pay GST and need to file GSTR-4 annually.

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Post by Arnold Thomas

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