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  • Writer's pictureNamrata Juvekar

Opting-in for GST Composition Scheme for FY 2021-22??

The GST Network (GSTN) has released a fresh advisory for taxpayers opting into the GST composition scheme. All the businesses that have already opted in to the past composition scheme and intend to continue for FY 2021-22 need not file the declaration.

Who is eligible?

  1. Eligible dealer or manufacturer of goods must have a PAN-level or aggregate turnover of up to Rs.1.5 crore in the previous financial year. Any regular taxpayer not wishing to claim input tax credit may benefit from the scheme if the turnover criterion is met.

  2. However, this limit is Rs.75 lakhs in a few states such as Tripura, Manipur, Meghalaya, Mizoram, Nagaland, Arunachal Pradesh, Sikkim and Uttarakhand.

  3. In case the taxpayer is supplying services or is into mixed supplies, the aggregate turnover of the previous fiscal year has to be equal to or below Rs.50 lakhs for him to be eligible under the scheme.

Who is not eligible?

  1. Suppliers of the goods/services who are not liable to pay tax under GST

  2. Inter-State outward suppliers of goods/services

  3. Taxpayers supplying goods through e-commerce operators who are required to collect tax under sec 52

  4. 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

How to Opt-in?

The eligible dealer who intend to join the scheme must file form CMP-02 by 31st March 2021. Newly eligible taxpayers can opt into the composition scheme after logging into the GST portal by filling this form. The composition scheme will be available for these taxpayers with effect from 1st April 2021 upon the filing of the form CMP-02.

Log-in>Services > Registration > Application to opt for Composition Levy > Filing form GST CMP-02 > File application under DSC/EVC

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