Advisory for Opting in for Composition (Form GST CMP-02) for FY 2020-21

-

Advisory for Opting in for Composition (filing Form GST CMP-02) 18/02/2020

Who can opt in for Composition :- 

Eligible existing registered taxpayers can opt in for composition, for financial year 2020-21, by filling up Form GST CMP-02. Composition scheme shall be effective from 1st April 2020.

When to opt in for Composition:-

Prior to the commencement of the financial year.

How to opt in for Composition : -

A registered taxpayer can apply for composition after login. The navigation to apply for composition is as given below:-
  • Log in to the Taxpayers’ Interface
  • Go to Services > Registration > Application to opt for Composition Levy
  • Fill the form as per the form specification rules and submit

Who are eligible taxpayers:-

Those taxpayers can opt for Composition, who are regular taxpayer with an aggregate annual domestic PAN-based turnover less than as specified from time to time as given below:
  • Rs. 1.5 Crore for normal taxpayers
  • Rs. 75 lakh in the case of an eligible registered person, registered States, namely: –
           (i) Arunachal Pradesh,
          (ii) Manipur,
         (iii) Meghalaya,
         (iv) Mizoram,
          (v) Nagaland,
         (vi) Sikkim,
        (vii) Tripura,
        (viii) Uttarakhand:
  • For taxpayers dealing in only services or mixed supplies, turnover limit is Rs. 50 Lakh.

Who are not eligible taxpayers:-

Following taxpayers cannot opt for the Composition, if they are involved in or making:-
  • any supply of goods which are not liable to be taxed under this Act
  • inter-state outward supplies of goods
  • supplies through electronic commerce operators who are required to collect tax (Section 52) 
  • a manufacturer of notified goods i.e. Ice cream and other edible ice, whether or not containing cocoa, all goods i.e. Tobacco and manufactured tobacco substitutes, Aerated Water and Pan Masala.
  • a casual dealer
  • a Non-Resident Foreign Taxpayer
  • a person registered as Input Service Distributor (ISD)
  • a person registered as TDS Deductor/Tax Collector

Submission of Stock Intimation Details : 

Taxpayers opting in for composition need to file stock intimation details.

Return /Payment : 

  • All composition taxpayers are required to pay GST liability in Form GST CMP-08 quarterly on or before 18th of the month succeeding quarter end. 
  • And file GSTR4 as return annually on or before 30th April of every financial year.

Annual return

  • Annual return in form GSTR 9A must be filed by the composition dealers once a year.

Popular posts from this blog

PF payment due dates for the FY 2020-21 for tax audit reporting

-
Image
PF payment due dates for the FY 2020-21 for the purpose of tax audit reporting While preparing Tax Audit Report in Form 3CD it is important to fill due date of payment to various Employees contribution fund and actual payment of the contribution. i.e  "Details of contributions received from employees for various funds as referred to in section  36(1)(va)" Most commonly reported funds under the clause are EPF and ESIC. If there is delay in the payment of the contributions of PF and ESI may result in disallowance of the payment of contribution. Here is the chart of the due dates under EPF and ESIC for the FY 2020-21 for quick reference  PF payment due dates for the FY 2020-21 Period Due date Day Extended date Reference Apr-20 15/05/2020 Friday                                -                           -   May-20 15/06/2020 Monday                  
Continue Reading

PF payment due dates for the FY 2021-22 for reporting u/s 36(1)(va)

-
Image
PF payment due dates for the FY 2021-22 for the purpose of tax audit reporting Reporting under clause 20 (b) of Form 3CD requires due dates of payment to various Employees contribution fund. i.e  "Details of contributions received from employees for various funds as referred to in section  36(1)(va) " Here " due date " means the date by which the assessee is required as an employer to credit an employee's contribution to the employee's account in the relevant fund under any Act, rule, order or notification issued thereunder or under any standing order, award, contract of service or otherwise. Most commonly reported funds under the clause 20(b) are EPF and ESIC. If there is delay in the payment of the contributions of PF and ESI result in disallowance of the payment of contribution. Here is the chart of the due dates under EPF and ESIC for the FY 2021-22 for quick reference. PF payment due dates for the FY 2021-22 Period Due date Day
Continue Reading

Format of shorter notice consent for AGM (Annual General Meeting)

-
Image
Format of shorter notice consent for AGM (Annual General Meeting) Background The Companies Act mandates companies to issue a notice to members calling a general meeting at least 21 clear days before the date of the meeting. Sometimes, the matters in urgency require quick decision making and in such circumstances, the companies may go for calling general meetings at shorter notice. However, in case of the private limited companies the period can be less than 21 days as provided in the Articles of Association (AOA). Provision and Rule As per the provisions of Section 101 (1) of the Companies Act, 2013, every general meeting of a company may be called by giving not less than twenty-one days clear notice in writing or through electronic mode in such manner as provided under Rule 18 of Companies (Management and Administration) Rules 2014. What is Consent for shorter notice? It is permission obtained by the company from its shareholders, in advance, to call a general meeting at an earlier da
Continue Reading

PF payment due dates for the FY 2022-23 for reporting u/s 36(1)(va)

-
Image
PF payment due dates for the FY 2022-23 for the purpose of tax audit reporting Reporting under clause 20 (b) of Form 3CD requires due dates of payment to various Employees contribution fund. i.e  "Details of contributions received from employees for various funds as referred to in section  36(1)(va) " Here " due date " means the date by which the assessee is required as an employer to credit an employee's contribution to the employee's account in the relevant fund under any Act, rule, order or notification issued thereunder or under any standing order, award, contract of service or otherwise. Most commonly reported funds under the clause 20(b) are EPF and ESIC. If there is delay in the payment of the contributions of PF and ESI result in disallowance of the payment of contribution. Here is the chart of the due dates under EPF and ESIC for the FY 2022-23 for quick reference. PF payment due dates for the FY 2022-23 Period Due Date Day Extended D
Continue Reading

Letter of Authority for Tax Practitioners (Income tax)

-
Image
LETTER OF AUTHORITY I/We ________________ Proprietor/Partner/Director of _______________________ hereby authorize Mr/Mrs/ CA __________________________ [   to appear, represent and settle on my/our behalf the Income tax assessment proceeding/s before the Income tax officer / Assistant/Dy. / Commissioner of Income tax or in appeal before the Appellate Assistant Commissioner of Income   Tax, Commissioner of Income tax (Appeal) or the Appellate tribunal or the Board of Direct taxes for the assessment year 20XX-XX and   [ to produce accounts and documents / statements and to receive on my/our behalf any notice or documents / statements issued in connection with the said proceedings ] or/and [ to apply for, obtain and receive refund order in respect of the said assessment (if any) and ] or/and [ to apply for copies of the Income tax assessment order, the Appellate order or the order of the Commissioner of Income tax, the Central Board of Direct-taxes ] . I/
Continue Reading