Regular GST registered Taxpayers who don’t want to avail ITC facility and who have an aggregate annual domestic PAN-based turnover as per the following limits can opt for the Composition Levy under GST: In this article, we'll discuss how to opt composition scheme in GST for 2021-22, how to change regular to composition in GST 2021, last date to opt for composition scheme for 2021-22 etc.
In this article, we'll cover topics like GST composition scheme turnover limit 2021-22, last date to opt for composition scheme for 2022-23, GST regular to composition change, how to change composition to regular in GST 2021 and much more.
However, you cannot opt for the Composition Levy if you are/you undertake:
The GST rates for various Composition Dealers are as follows:
|Type of Business||CGST||SGST||Total|
|Manufacturers and Traders (Goods)||0.50%||0.50%||1.00%|
|Restaurants not serving alcohol||2.50%||2.50%||5.00%|
|Other Service Providers||3.00%||3.00%||6.00%|
The eligible GST registered Taxpayers who want to opt-in for the Composition Scheme for the FY 2021-22 have to file FORM GST CMP-02 on or before 31 March 2021 which is the last date to opt-out for the composition scheme for 2021-22. To file this form, the Taxpayer has to take the following steps: Step 1: Login on the GST Portal. Step 2: Under ‘Services’, select ‘Registration’ and then ‘Application to Opt for Composition Levy’. You will be redirected to a new screen – Application to Opt for Composition Levy. Your GSTIN, Legal Name of Business, Trade Name (if any), and Address of Principal Place of Business will be auto-populated and displayed on the screen. The Nature of Business and Jurisdiction will be listed as well. Step 3: In the ‘Composition Declaration’ section, you will have to pledge to abide by the conditions and restrictions applicable to Taxpayers under the Composition Levy. Step 4: Check the box in the ‘Verification’ section to proceed. Step 5: Select the Authorized Signatory from the drop-down menu and enter the Place. Step 6: Once the Authorized Signatory is selected, and the Place is entered, the options to submit the form will get activated. Select the desired mode and sign the application/form:
Once the application/form is successfully signed and submitted, the system will perform some validations at the back-end. If these are successful, an ARN will be generated and sent to the registered email address and mobile number (SMS) within the next 15 minutes.
Taxpayers who were regular Taxpayers in the previous FY, but are opting-in for the composition scheme for 2021-22, should file Form GST ITC-03 for reversal of ITC on stocks of inputs, semi-finished goods and finished goods available with them within 60 days from the effective date of opting in