The option exercised by a GST registered person to pay tax under the composition scheme will remain valid so long as he/she satisfies the conditions mentioned in section 10 of the Central Goods and Services Tax Act, 2017 and the CGST Rules.
Taxpayers who intend to withdraw from this composition scheme should file an application in Form GST CMP-04 on the GST common portal. The intimation in Form GST CMP-04 should be filed within seven days of withdrawal (the date the taxpayer plans to opt-out of the Composition Scheme or becomes ineligible). Read on to know more about:
Note: Taxpayers will be liable to pay GST like normal taxpayers from the day they cease to satisfy any of the conditions of the composition scheme. They should also issue tax invoices for every taxable supply made thereafter.
Step 1: Log in to GST Portal.
Step 2: Under ‘Services’, select ‘Registration’ and then ‘Application for Withdrawal from Composition Levy’.
Step 3: From the drop-down list available, select the reason for withdrawal.
Step 4: Select the ‘Verification’ checkbox and the ‘Name of Authorized Signatory’ from the list available. Enter the ‘Place’ of filing the form.
Step 5: Click on the ‘SAVE’ button and file the CMP-04 using the DSC or EVC option.
Note: Once the application in Form GST CMP-04 is successfully filed, the ‘Taxpayer Type’ under ‘My Profile’ gets changed automatically to ‘Regular’.