1. How to opt-in for Composition Scheme:
♦ The eligible registered taxpayers, who want to opt-in for composition scheme for the FY 2021-22, need to file FORM GST CMP-02 application, on or before 31st March, 2021, post login on GST portal. The taxpayers may navigate as follows:
Log-in>Services > Registration > Application to opt for Composition Levy>Filing form GST CMP-02>File application under DSC/EVC
♦ Once Form GST CMP-02 application is filed, the composition scheme will be available to the taxpayer, w.e.f. 1st April 2021.
♦ The taxpayers already opted in for composition scheme earlier are not required to opt in again for FY 2021-2022.
♦ Taxpayers who were regular taxpayers in previous FY, but are opting-in for composition scheme for 2021-22, must file Form GST ITC-03 for reversal of ITC on stocks of inputs, semi-finished goods and finished goods available with them, within 60 days from the effective date of opting in.
2. Who is eligible for opting-in for Composition Scheme:–
Following Normal taxpayers, who don’t want to avail ITC facility, may opt for this scheme:
- having aggregate turnover (at PAN level) upto Rs. 1.5 Crore in the previous FY.
- having aggregate turnover (at PAN level) upto Rs. 75 lakh in the previous FY and who are registered in Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura & Uttarakhand.
- supplying services and/or mixed supplies having aggregate turnover of previous FY upto Rs. 50 lakhs.
3. Who is not eligible for opting in composition scheme:
- Suppliers of the goods/services who are not liable to pay tax under GST
- Inter-State outward suppliers of goods/services
- Taxpayers supplying goods through e-commerce operators who are required to collect tax under sec 52
- The manufacturers of notified goods like Ice cream and other edible ice, whether or not containing cocoa, tobacco and manufactured tobacco substitutes, Pan Masala & Aerated water
4. For more details click on:
• Mr. X is engaged in a franchisee business. He owns 5 Franchisee outlets of Say for example Louis Phillips Brand.
• Mr. X is entitled to a commission Income @ 20% of Net Sales Figure [Sales (-) GST].
• Invoices Issued to Customers are on behalf of Louis Phillips and generated through their software.
• Showroom’s Petty Expenses, Staff’s Salary and Electricity bills are borne by Mr. X. (Rent is Borne by the Brand and not by Mr. X).
• Inventories in the showroom belong to the Brand.
• Mr. X’s Commission Income in a year amounts to Rs. 40 Lakhs.
• Mr. X is not GST Registered.
• Is Mr. X liable to get registered under GST?
• Which scheme (Regular/ Composite) will be beneficial for Mr. X. Since Mr. X cannot take input of any expense.
While auditing ‘X’ s financials in F.Y. 2020-21, reveals that specified person applicable to be registered under GST from F.Y. 2018-19 itself. Person is also eligible for composition scheme option . But not yet taken registration till now. So my question is can X take registration under GST as composition scheme and pay tax amount as per composition scheme computation for the previous years now?
Dear Sir
In FY 2020-21 we were in composition and in FY2021-22 We were in composition till June 2021. but system convert us in regular gst from 1st july 2021. we were not aware of it and did not declare of our stock for Input within one month.now we have approx 63 lack stock .what can we do now. kindly suggest .
if it is opted regular taxpayer to composition on 20th of March 2021, What about the return filling of March 21, Please send me an email,