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Under the GST, if a dealer wants to use the composition scheme, they have to let the government know. Form GST CMP-01 or Form GST CMP-02 can be used to do this.
A moving taxpayer who wants to use the composition scheme must fill out Form CMP-01. The deadline was August 1, 2017, which was one month after July 2017. If a user wants to use the composition scheme for a fiscal year or in the middle of a fiscal year, they have to tell the government. This is done by filling out the GST CMP-02 form. If CMP-02 is filed in the middle of the financial year, the rules of the plan start to take effect the month after CMP-02 is filed.
For instance, a taxpayer fills out Form CMP-02 in December 2017. This means that the composition scheme rules will start to be used in January 2018. Both CMP-01 and CMP-02 must be made online through the GST Portal, or GSTN. The way to file is the same for both forms.
Here’s How to Submit Form CMP-02 Through the GST Online Portal
Step 1 – Login to GST Portal.
Step 2 – Go to ‘Services’ > ‘Registration’ > ‘Application to Opt for composition Levy’.
Step 3 – On this window read the ‘Composition Declaration’ and ‘Verification’ carefully and tick on the checkbox. Choose the ‘Name of Authorized Signatory’ from the drop-down. Also, type the ‘Place’ and click on ‘SAVE’.
Step 4 – If you are a Company or an LLP you can only submit the application with DSC. Any other registrant can use any of the three methods to submit the return.
Step 5 – A pop up will open containing the warning. Click on ‘PROCEED’ here.
When the application is sent, a message that says “Success!” is shown. Also, a confirmation is sent to your email address and phone number.
Once this form is filled out, a Composition Dealer has 90 days to fill out GST CMP-03. Check out our guide on how to file CMP-03 on the GST Portal.