Every taxpayer who has opted for the Composition Scheme has to submit a stock statement to the Government. This intimation has to be given within 60 days of filing CMP-02 in Form GST CMP-03.
In this article, we have covered the following:
Taxpayers who have opted for the composition scheme have to furnish details of stock held by them (including the details of goods received from unregistered persons) as on the day preceding the date on which they have opted for the scheme.
For example: If a taxpayer has opted for the Composition scheme on 15 November, stock details as on 14 November have to be submitted to the Government in Form GST CMP-03.
In Form CMP-03, taxpayers have to provide details of:
- The stock of purchases made from registered persons (Name and GSTIN of the supplier, bill/invoice number and date, value of stock, applicable VAT/Central Excise/Service Tax).
- The stock of purchases made from unregistered persons (Name and address of the unregistered person, bill/invoice number and date, value of stock, applicable VAT/Central Excise/Service Tax).
- Tax paid (Amount of Central tax, State tax/UT tax and debit entry number)
Along with the stock details, this form asks for the following basic information:
- GSTIN of the taxpayer
- Legal name/Trade name
- Address of the principal place of business
- Details of the application filed for opting into the Composition Scheme:
- Application Reference Number
- Date of filing the application
Step 1: Log in to the GST portal.
Step 2: Under ‘Services’ select ‘Registration’ and then ‘Stock Intimation for opting Composition Levy’ to download the Form GST CMP-03 as an excel template.
Step 3: Unzip the downloaded file and open the excel sheet. Here, select the ‘Enable Content’ option.
Step 4: Enter the GSTIN and details of stock in hand (to enter the stock details, the required number of rows have to be added first). Once all details are entered, click on the Validate button.
Step 5: In case there are errors, an error message will be displayed. Rectify the errors and click on the Validate button again.
Step 6: Once the validation is complete, a success message will be displayed. Click on ‘Ok’.
Step 7: Click on the ‘Generate File to Upload’ button to create a JSON file.
To upload the downloaded JSON file and file CMP-03:
Step 1: Log in to the GST portal.
Step 2: Under ‘Services’ select ‘Registration’ and then ‘Stock Intimation for opting Composition Levy’.
Step 3: Here, click on ‘Choose File’ and select the JSON file to upload.
Step 4: Click on the ‘UPLOAD & VALIDATE’ button.
Step 5: Once the file is updated and validated, the tax Payable on the stock will be auto-calculated.
- In the case of a NIL or negative figure, the same will be ignored.
- In case of a positive figure, taxpayers need to make the payment before submitting the application.
- If the balance in the Electronic Cash Ledger is not sufficient to make the payment of the liability, save the intimation at this stage and make the payment first.
- Taxpayers can click on the ‘VIEW BALANCE IN CASH LEDGER’ button to know the available cash balance.
Step 6: Click on ‘Update Ledger Balance’.
Here, the balance in Electronic Liability Ledger will increase. Once the payment is made a ‘Debit Entry No.’ will be generated.
Step 7: Select the ‘Verification’ checkbox, name of the Authorized Signatory from the drop-down list and enter the place where the form is filed. Select SUBMIT WITH EVC or SUBMIT WITH DSC button and complete the verification.
Once the verification is completed, a success message is displayed. The Application Reference Number (ARN) will be sent to the registered email address and mobile number.
Note: The application to opt for Composition Levy is auto-approved.
Image Source: https://tutorial.gst.gov.in/userguide/compositionpoc/intimationofstockdetails.htm