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

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 GST CMP-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.