Offer ends on
0
DAYS
0
HOURS
0
MINS
0
SECS
2020-02-18 09:26:46GST CenterEnglishForm GST CMP-02 is an online application form that needs to be filed by any taxpayer who is registered as a normal taxpayer under GST.https://quickbooks.intuit.com/in/resources/in_qrc/uploads/2020/02/Form-GST-CMP-02-Meaning-Due-Date-and-Filing.jpghttps://quickbooks.intuit.com/in/resources/gst-center/form-gst-cmp-02/Form GST CMP-02: Meaning, Due Date and Filing

Form GST CMP-02: Meaning, Due Date and Filing

8 min read

Try QuickBooks Invoicing & Accounting Software – 30 Days Free Trial.

To opt for the Composition Scheme it is mandatory for the taxpayer to register under the GST law. Composition Scheme is a provision provided under section 10 of CGST act, 2017 to make GST compliance for small taxpayers hassle free. As per this scheme, a composition dealer need not maintain elaborate accounts and records.

Moreover, such a taxpayer now needs to file an annual return in form GSTR-4 and make payment of tax on self assessment basis quarterly in Form GST CMP-08.

As per the 32nd GST Council Meeting, a composition dealer needs to pay tax on self assessment basis every quarter in for GST CMP-08. However, the return for tax paid every quarter would now be filed annually by a composition dealer in form GSTR-04. T

This is unlike the initial provision where a composition dealer had to make payment of tax as well as file returns every quarter.

Also, to avail Composition Levy, a taxpayer needs to intimate the tax authorities to pay tax under section 10 in the prescribed forms that is GST CMP-01 and GST CMP-02. This article talks about form GST CMP-02, how to file GST CMP-02, GST CMP-02 due date and who needs to file such a form.[/vc_column_text]

GST CMP-02 Meaning

Form GST CMP-02 is an online application form that needs to be filed by any taxpayer who is registered as a normal taxpayer under GST.

Such a form needs to be filed at the GST portal before the commencement of the financial year for which the option to pay composition tax is exercised.

Also, a new taxpayer who becomes eligible to register under the GST act can also file an application to opt for the Composition Levy with the tax authorities.

However, such a taxpayer needs to file an online application to opt for the composition levy in Form GST REG-01, that is application for new registration.

However, a taxpayer who is registered under an existing law and who now wants to migrate to the composition scheme under the GST law must intimate the tax authorities to opt for composition levy is form GST CMP-01.

This means that a taxpayer can opt for the composition levy via the following forms depending upon his status as a taxpayer:

  • form GST CMP-01
  • The form GST CMP-02
  • form GST REG-01

Furthermore, the taxpayers supplying services can also apply for composition scheme from financial 2019 – 2020 onwards. This is because as per 32nd GST Council Meeting, the composition scheme has now been made available for service providers as well.

Who Files GST CMP-02?

It is mandatory for any taxpayer who wants to opt for the composition scheme under GST either at the beginning or in the middle of a given financial year to intimate the government regarding the same.

Such an intimation must be made by the taxpayer in form GST CMP-02. Furthermore, if the taxpayer files GST CMP-02 in the middle of the financial year, the rules or provisions regarding the composition levy would be applicable from the month subsequent to the month in which form GST CMP-02 is filed.

For instance, Mr. Kapoor files GST CMP-02 in January 2018. Accordingly, the provisions regarding composition scheme would be applicable from February 2018.

Also, a taxpayer who wishes to migrate from an existing tax law to composition scheme under GST must necessarily intimate the tax authorities regarding his intent to opt for composition scheme under GST. Such a taxpayer needs to file an application in form GST CMP-01.

Furthermore, along with GST CMP-02, the taxpayer needs to make a declaration regarding intimation of ITC reversal or payment of tax on inputs held in stock, inputs contained in semi – finished and finished goods in stock and capital goods under sub section 4 of section 18.

GST CMP-02 Due Date

As per corrigendum to circular number 97/16/2019-GST, every person who wants to opt for composition scheme may file intimation with the tax authorities in a prescribed manner in form GST CMP-02 latest by 30th September, 2019.

Such a person shall also furnish the statement in form GST ITC-03 in accordance with the CGST rules.

Following is the sequence of changes made to the due dates to file GST CMP-02 for the financial year 2019-2020.

Circular NumberDate of CircularDue Date AnnouncedForms
Circular No. 97/16/2019-GST5th April, 201930th April, 2019GST CMP-02, GST CMP-03
Corrigendum to Circular No. 97/16/2019-GST1st July, 201931st July, 2019GST CMP-02, GST CMP-03
Corrigendum to Circular No. 97/16/2019-GST29th July, 201930th September, 2019GST CMP-02, GST CMP-03

How to File GST CMP-02?

You need to follow the following steps in order to opt for the composition levy on the GST portal in form GST CMP-02.

  • Access GST Portal

Go to the GST portal gst.gov.in. On the home page, enter your login credentials to login to the GST portal.

  • Choose Application to Opt for Composition Levy

Once you login to the GST portal using your login credentials, you need to select ‘services tab’ and then ‘registration menu’ from the dropdown list. Under the ‘registration menu’ choose ‘application to opt for composition scheme’ from the given list of options.

  • Check Composition Declaration on Application to Opt for Composition Levy Page

Once you select the ‘application to opt for composition scheme’ option, you will be directed to the ‘application to opt for composition scheme’ page. This page will display your GSTIN, legal name of business, trade name (if any) and address of principal place of business.

Below all these details the nature of your business as well as its jurisdiction will also be listed. Further, following these details, a composition declaration checkbox is placed.

You must check this box as it is a declaration that you shall abide by the conditions and restrictions specified for the taxpayers who opt for the composition scheme under the act and rules thereunder.

  • Verification

Before submitting the form, you must also check the box for verification that is placed right below the composition declaration.

The verification box is a declaration that the information given by you as a taxpayer is correct and that nothing has been hidden from the tax authorities.

  • Select Authorized Signatory

Before submitting the form, you need to select the authorized signatory from the dropdown menu in the ‘name of authorized signatory’ field. Further, you also need to enter the place in the ‘place field’.

  • Select the Option to Submit the Form

After you select the authorized signatory and enter the place, the options to submit the form get activated. You can submit the form either via DSC, E-Sign and EVC.

Select the requisite option and click the corresponding submission button. We have chosen the DSC option for the purpose of this article.

  • Display of Warning

Once you select the corresponding submit button, a warning gets displayed to confirm your action. You need to click on the ‘proceed’ button and move forward.

  • Retrieval of DSC

Once you click on the ‘proceed’ button, the GST portal would fetch your digital signatures available in the system using the emSigner. Further, you will get a popup to select the requisite DSC. You need to select the same and click the ‘sign’ button.

  • Display of Success Message

Once you select the desired digital signature and click the sign button, you will get a success message only if your digital signature gets authenticated.

  • Generation of ARN

Once you get a success message, the GST portal will perform certain validations. If such validations turn out to be successful, the portal will generate ARN (Application Reference Number).

Such ARN will be sent to your registered email address and mobile number within the next 15 minutes.

Form GST CMP-02

{See rule 3(3) and 3(3A)}
Intimation to pay tax under section 10 (composition levy)
(For persons registered under the Act)

1. GSTIN
2. Legal Name
3. Trade Name, if any
4. Address of principal place of business
5. Category of Registered Person (select from drop down)
(i) Manufacturers, other than manufacturers of such goods as may be notified by the Government
(ii) Suppliers making supplies referred to in clause (b) of paragraph 6 of Schedule II
(iii) Any other supplier eligible for composition levy
6. Financial Year from which composition scheme is opted
7. JurisdictionCentreState
8. Declaration – I hereby declare that the aforesaid business shall abide by the conditions and restrictions specified for paying tax under section 10
9. Verification I ________________________________________ hereby solemnly affirm and declare that the information given here in above is true and correct to the best of my knowledge and belief and nothing has been concealed therefrom.
Signature of Authorised Signatory
Name
Place
DateDesignation/Status
[/vc_column][/vc_row]

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

Related Articles

Impact of COVID-19 on Financial Reporting

To guide auditors as well as chartered accountants, ICAI has developed an…

Read more

ICAI Guidelines on the Impact of Coronavirus on Auditing of Financial Statements

The outbreak of COVID-19 has compelled the government to undertake measures such…

Read more

Why switch to Cloud based Accounting Platforms?

By Arijit Datta FCCA, Fincap Consulting This article explains why, as a…

Read more