CMP-02 - Intimation To Pay Tax Under Section 10 (Composition Levy)

All About CMP-02

Every GST registered taxpayer who opts to pay tax under the Composition Scheme has to intimate the same to the Government in FORM GST CMP-01 or FORM GST CMP-02. CMP-01 was for the migrated taxpayers who wanted to opt for the Composition Scheme. Other taxpayers who wish to be taxed under the Composition scheme (for a financial year or during the middle of a financial year) have to inform the government about their choice by filing FORM GST CMP-02.

Format Of Form GST CMP

How To File Form GST CMP-02 Online?

Step 1: Log in to the GST Portal.

Step 2: Under ‘Services’, select ‘Registration’ and then click on ‘Application to Opt for Composition Scheme’.

Step 3: The GSTIN, Name of Business/Trade name, Address of Principal Place of Business, Nature of Business and Jurisdiction will be auto-populated. A ‘Composition Declaration’ will have to be given by the taxpayer to opt-in for this scheme. ‘Tick’ on the checkboxes and select the ‘Name of Authorized Signatory’ from the drop-down list available and add the place of filing the form. ‘Save’ the form to proceed.

Step 4: Submit the form using:

• DSC or
• E-Signature or
• EVC option.

Note: In case the taxpayer is a Company or an LLP, the application can be submitted only with DSC. After the submission mode is selected, a warning will pop-up. Click on ‘Proceed’.

Once the application is successfully filed, a success message is displayed. The acknowledgement is automatically sent to the registered email and mobile number of the taxpayer.

Points To Note

• Applicants who were regular taxpayers in the previous financial year but are opting-in for the composition scheme (by filing Form CMP-02) in the current year should file ITC-03 for the reversal of ITC credit on stocks of Inputs, semi-finished goods and finished goods available with them within the prescribed period (generally 60 days).
• For the financial year 2020-21, taxpayers can electronically file a signed and verified (through EVC) intimation in Form pay 02 on the common portal, either directly or through a Facilitation Centre.
• After the Form GST CMP-02 is filed, the taxpayer has to file Form GST CMP-03 (stock statement) within 90 days. Read more about CMP-03 here.