I am summarizing some important points / action points for taking option for composition scheme under GST.
What is the due date for taking option of composition scheme under GST?
|S.N.||Nature of Registration||Due date for submitting the option|
|1||Persons who are migrated from VAT/ Service Tax/ Excise||The migrated dealers can take option to come under composition scheme upto 21st July, 2017. They need to file Form GST CMP-01 from their online portal to take this option.
Rule 3(1) of CGST Rules, 2017
|2||Persons who are applying for new registration under GST regime and want to opt for composition scheme from start of business (First time registration under GST)||The persons making fresh registration can take the option at the time of registration only. They need to “tick” the option given in part B of form GST REG-01.
Rule 3(2) of CGST Rules, 2017
|3||Persons who are Registered/migrated under GST in normal scheme but now wants to opt for composition scheme||The person who are already Registered / Migrated under normal scheme in GST but wants to opt for composition scheme, they can do so only from the beginning of the financial year.
Forms to be submitted in this case.
a. Form GST CMP-02 to be filed prior to commencement of the new financial year
b. Form GST ITC-03 within 60 days from the commencement of the new FY.
Rule 3(3) of CGST Rules, 2017
1. If you are migrated from VAT/Service Tax/ Excise and failed to opt for composition by 21st July, 2017, then you can only opt for composition w.e.f. 01-04-2018.
2. If you are registering for the first time in GST but failed to “tick” the option of composition in the registration application, then you can only opt for composition w.e.f. 01-04-2018.
3. If you have taken fresh registration in GST under normal scheme but not want to opt for Composition scheme, then you can do so only w.e.f. 01-04-2018
Is there any other return to be filed by MIGRATED Assessees who are taking option under Composition Scheme?
|S.N.||Nature of Registration||Additional filing requirement|
|1||Persons who are migrated from VAT/ Service Tax/ Excise||The migrated dealers who have opted for composition scheme are required to submit details of stock in hand held by him as on 30th June, 2017 in form GST CMP-03.
This form is required to filed upto 29th August, 2017.
This form contains the details of stock held which is purchased from registered persons and unregistered person.
Abstract of form GST CMP-03
Details of stock of purchases made from registered persons under the existing law
|S.N.||GSTIN/TIN||Name of Supplier||Bill/ Invoice No.||Date||Value of Stock||VAT||Central Excise||Service Tax (if applicable)||Total|
Details of stock of purchases made from unregistered persons under the existing law
|S.N.||Name of unregistered person||Address||Bill/ Invoice No.||Date||Value of Stock||VAT||Central Excise||Service Tax (if applicable)||Total|
Whether option of Composition Scheme is required to be taken every year?
Once composition option is granted, there is no need for the assesse to file the option again every year.
Amit Mundhra, FCA
The author is a member of ICAI and he can be reached at firstname.lastname@example.org