Option for the Composition Levy - GST Ready Reckoner - GST

Option / Intimation for the Composition Levy Rule 3 states that in order to avail this scheme, you need to file an online application to Opt for Composition Levy with the tax authorities. Taxpayers who can opt for this scheme can be categorized as below: (a) Migration of persons registered under the existing law Any person who has been granted registration on a provisional basis under rule 24(1)(b) shall electronically file an application in FORM GST CMP-01 on the common portal within thirty days of the appointed day which shall be considered as an intimation to pay tax under Composition Levy. where the intimation in FORM GST CMP-01 is filed after the appointed day, the registered person shall not collect any tax from the appointed day but shall issue bill of supply for supplies made after the said day. (b) New Taxpayers Any person who becomes liable to registration / voluntary registration under GST Act, after the appointed day, needs to file his option to pay composition amount in the Application for New Registration in Form GST REG-01 which shall be considered as an intimation to pay tax under Composition Levy. (c) Existing Taxpayers Any taxpayer who is registered as normal tax payer under GST needs to file an application to opt for Composition Levy in FORM GST CMP-02 at GST Portal prior to the commencement of financial year for which the option to pay tax and shall furnish the statement in FORM GST ITC-03 in accordance with the provisions of rule 44(4) within a period of 60 days from the commencement of the relevant financial year. Provided that an application in FORM GST CMP-02 for the Financial year 2020-21 will be considered as an intimation to pay tax only when duly signed or verified through electronic verification code, on the common portal, either directly or through a Facilitation Centre notified by the Commissioner, on or before 30th day of June, 2020 shall furnish the statement in FORM GST ITC-03 as per rule 44(4) up to the 31st day of July, 2020. [ Rule 3(3) of CGST Rule ] Important Notifications Circulars Clarification regarding exercise of option to pay tax under notification No. 02/2019-Central Tax (Rate) dated 07.03.2019 . [ Circular No. 97/16/2019-GST dated 05.04.2019 ] Extension of time limit for intimation of details of stock held on the date preceding the date from which the option for composition levy is exercised in FORM GST CMP-03. Extended till 31 st October, 2017 - Order No. 04/2017-GST dated 29.09.2017 Extended till 30 th November, 2017 - Order No. 05/2017-GST dated 28.10.2017 Extended till 31 st January, 2018 - Order No. 11/2017-GST dated 21.12.2017 Extension of time limit for filing intimation for composition levy under rule 3(1) in Form GST CMP-01 of the CGST Rules, 2017. [ F. No. 345/114/2017-GST dated 21.07.2021 ]