Composition Scheme - Opt in - Opt out Rules

4. Opt in / Opt out Rules for Composition Scheme

A. Seeking fresh registration under GST

Form Number Due Date Remarks
Application for Registration (Form GST REG-01) -
-
Intimation of details of stock on date of opting compostion levy (Form GST CMP-03 ) Within 60 days of exercise of option
Giving details of
  • Stock
  • Inward supply of goods received from unregistered persons held by him on the date of preceding the day of exercise of option

B. Already registered in pre-GST regime and opting for Composition under GST

Form Number Due Date Remarks
Intimation to pay tax under Sec 10 (Migration to GST) (FORM GST CMP-01) Prior to appointed date or within 30 days of such date Extended to 16 Aug, 2017
If Intimation filed after appointed day, the registered person
  • Will not collect taxes from appointed day
  • Issue Bill of Supply for supplies made after the said day
Intimation of details of stock on date of opting compostion levy (FORM GST CMP-03 ) Within 60 days of exercise of option
Giving details of
  • Stock
  • Inward supply of goods received from unregistered persons held by him on the date of preceding the day of exercise of option

C. Registered as normal tax-payer under GST opting for Compostion under GST

Form Number Due Date Remarks
Intimation to pay tax under Sec 10 (For persons registered under GST act) (FORM GST CMP-02) Prior to commencement of the year for which the option to pay tax under composition scheme is exercised
-
Declaration of intimation of ITC reversal or payment - Rule 44(4) (FORM GST ITC-03) Within 60 days of commencement of relevant financial year
Provide details of ITC reversal/payment of tax relating to inputs lying in stock, inputs contained in semi-finished or finished goods held in stock & capital goods (reduced by percentage points)

D. Withdrawal from composition scheme

Form Number Due Date Remarks
Intimation or Application for withdrawal from compostion levy (FORM GST CMP-04) For non-fulfillment of conditions in Act or rules
  • Within 7 days of occurrence of event Voluntary withdrawal
  • Before the date of withdrawal
Issue tax invoice for every taxable supply from the date of non-fulfillment of conditions in ACT or Rules
Declaration for claim of ITC under SEC 18(1) (FORM GST ITC-01) Within 30 days from the date of becoming eligible to avail input tax credit
  • Provide details of ITC relating to inputs lying in stock, inputs contained in semi-finished or finished goods held in stock & capital goods (reduced by percentage points)
  • Credit can be taken on the day immediately preceding the date on which you are liable to pay tax under the normal scheme