To opt for a composition scheme you has to file GST CMP-02 with the government. This can be done online by logging into the GST portal. This intimation should be given at the beginning of every Financial Year by you to opt for the Composition Scheme.
Here is a step by step –
Step 1 – Login to GST Portal.
Step 2 – Go to ‘Services’ > ‘Registration’ > Click on ‘Application to Opt for Composition Levy’.
Step 3 – On this window read the ‘Composition Declaration’ and ‘Verification’ carefully and tick on the checkbox.
Choose the ‘Name of Authorized Signatory’ from the drop-down. Also, type the ‘Place’ and click on “SAVE”.
Step 4 – If you are a Company or an LLP you can only submit the application with “DSC”. Any other registrant can use any of the three methods to submit the return.
Step 5 – A pop up will open containing the warning. Click on ‘PROCEED’ here.
Once the application is submitted a success message is displayed. Also, an acknowledgment is sent to your registered email id and mobile.
NOTE: After filing this form a you has to file GST CMP-03 within 90 days.
Here is a step-by-step guide to file CMP-03 on GST Portal:
Step 1: Log in to GST Portal
Step 2: Go to ‘Services’ > ‘Registration’ > ‘Stock intimation for opting Composition Levy’.
Step 3: Click on the ‘DOWNLOAD TEMPLATE’ button.
Step 4: Download the Excel Template and unzip the file.
Step 5: Open the Excel file. Click on ‘Enable Content’ on the top of the Excel to enable macros.
Step 6: Enter your GSTIN.
Step 7: Click on ‘Insert Rows’. A popup will appear. Enter the number of rows that you want in the excel.
The stock details have to be bifurcated into two:
- Purchases from a registered dealer
- Purchases from unregistered dealer
Step 8: Click on the ‘Validate’ button once all the details have been entered.
Any errors will pop up once you click on ‘Validate’. Rectify the errors and click on ‘Validate’ again.
Step 9: Click on the ‘Generate File to Upload’ button below the ‘Validate’ button to create the CMP-03 file. This file has to be uploaded to the GST Portal/ GSTN.
On successful download, a message is displayed with the path where the file is saved.
Step 10: Log in to GST Portal and go the section ‘Stock intimation for opting Composition Levy’. Click on ‘Choose File’.
Select the CMP-03 file and click on ‘UPLOAD AND VALIDATE’.
Step 11: On uploading the file, Tax Payable on the stock is calculated and displayed under ‘Details of tax paid’.
Click on ‘Update Ledger Balance’.
The balance in Electronic Liability Ledger will increase. This liability has to be paid with the available balance in Electronic Cash Ledger.
Once this is done a ‘Debit Entry No.’ is generated and a success message is displayed.
Step 12: Select the ‘Verification’ checkbox, ‘Name of Authorized Signatory’ and fill the ‘Place’ field. Submit the CMP-03 with DSC, E-SIGN or EVC
On successful submission, a success message is displayed along with the Application Reference Number (ARN).
NOTE: After successfully filing, ARN will be generated and intimated to you through email and SMS