Should I opt for Composition Scheme under GST for FY 2020-21 ??

Form GST CMP – 02 is required to avail the process of filing under the Composition Scheme for the YR 2020-21.

Eligibility Criteria

Who can avail this Composition scheme:-

  • Assesses who do not want an ITC Credit & having aggregate turnover (at PAN level) below Rs. 1.5 Crore in the previous financial year can apply to the above scheme

Process –

  • To Apply on the GST Portal for the composition scheme for the financial year, 2020-21
  • Businesses or Individuals being already in composition scheme in the previous financial year are not required to re-apply for composition again for FY 2020-2021.
  • FORM GST CMP-02 for the application up needs to be filed on or before 31st March 2020 on the common portal.

Navigate on the GST Portal is as follows:

  • Log-in>Services > Registration > Application to opt for Composition
  • Levy>filing form GST CMP-02>file application under DSC/EVC.
  • A composition scheme will be available w.e.f. 1st April 2020. to the taxpayer once the application is done on the portal.

Transition:-

For the compliance till date, taxpayers as regular assesses in the  previous financial year & opting-in composition scheme for 2020-21 must file ITC-03 for reversal of ITC credit on stocks of Inputs, semi-finished goods and finished goods as per records within a period as prescribed.

Return /Payment

Businesses opting for composition shall file FORM GST CMP-08 quarterly & are required to pay GST.

They are also required to file GSTR-4 annually.

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