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A Guide to Filing Form GST CMP-03 on the GST Portal

This article outlines the complete process for submitting Form GST CMP-03 on the GST Portal, a mandatory step for taxpayers who have opted into the Composition Scheme. It details how to declare stock held on the enrollment date, emphasizing the 90-day filing window after CMP-02. The guide covers downloading templates, data entry, validation, and final submission using various digital authentication methods.

📖 3 min read read🏷️ GST Composition Scheme

The article discusses Form GST CMP-03, which is required after a taxpayer opts into the Composition Scheme. This form serves to inform the government about the stock held by the taxpayer on the date of scheme enrollment. Form CMP-03 must be submitted within 90 days of filing CMP-02.

For instance, if a Composition Dealer submits CMP-02 on November 25, 2017, they must file their stock details in CMP-03 by February 23, 2018.

Recent Updates February 24, 2022 Taxable individuals under the Composition Scheme, and those intending to join it for the fiscal year 2022-23, are required to submit a declaration via Form CMP-02 on the GST portal by March 31, 2022. March 23, 2021 The deadline for filing Form CMP-02 to declare eligibility for continuing under the composition scheme for the upcoming fiscal year 2021-22 was March 31, 2021. February 15, 2021 The last date to opt into the composition scheme for the fiscal year 2021-22 using Form CMP-02 was March 31, 2021. The facility for taxpayers to opt into this scheme is currently available on the GST portal.

Detailed Procedure for Filing CMP-03 on the GST Portal

Here is a comprehensive, step-by-step guide for submitting Form CMP-03 on the official GST Portal:

  1. Log In to the GST Portal Begin by accessing the GST Portal with your credentials.
  2. Navigate to the Stock Intimation Section From the main menu, go to Services > Registration > Stock intimation for opting Composition Levy.
  3. Download the Template Locate and click the DOWNLOAD TEMPLATE button.
  4. Extract the Excel Template Download the Excel Template, then unzip the file to access it.
  5. Open and Enable Content in Excel Open the Excel file. To ensure macros function correctly, click on Enable Content at the top of the spreadsheet.
  6. Enter Your GSTIN Input your Goods and Services Tax Identification Number (GSTIN) into the designated field.
  7. Insert Rows for Stock Details Click on Insert Rows. A pop-up window will appear, prompting you to enter the required number of rows for your stock details. Stock information must be categorized into two groups:
    • Purchases made from registered dealers.
    • Purchases made from unregistered dealers.
  8. Validate Entered Details After inputting all necessary information, click the Validate button. Any detected errors will be displayed, requiring you to correct them before re-validating.
  9. Generate File for Upload Once validation is successful, click the Generate File to Upload button, located beneath the Validate button. This action creates the CMP-03 file, which you will upload to the GST Portal. Upon successful generation, a message will confirm the file's download location.
  10. Upload and Validate the File Return to the GST Portal and navigate back to the Stock intimation for opting Composition Levy section. Click Choose File, select your generated CMP-03 file, and then click UPLOAD AND VALIDATE.
  11. Update Ledger Balance for Tax Payable After the file is uploaded, the system will automatically calculate and display the tax payable on your stock under Details of tax paid. Proceed by clicking Update Ledger Balance. This action will increase the balance in your Electronic Liability Ledger. This liability needs to be settled using the available balance in your Electronic Cash Ledger. A Debit Entry No. will be generated upon completion, along with a success message.
  12. Complete Verification and Submission Finally, select the Verification checkbox, choose the Name of Authorized Signatory, and input the Place. Submit the CMP-03 form using either DSC (Digital Signature Certificate), E-SIGN, or EVC (Electronic Verification Code). A success message, including the Application Reference Number (ARN), will be displayed upon successful submission.

Frequently Asked Questions

What is the purpose of the GST Composition Scheme in India?
The GST Composition Scheme aims to simplify tax compliance for small taxpayers by allowing them to pay GST at a fixed, lower rate of turnover instead of the regular GST rates, thereby reducing the burden of extensive paperwork and formalities.
Who is eligible to opt for the GST Composition Scheme?
Businesses with an annual turnover up to a certain threshold (currently Rs. 1.5 crore for most states and Rs. 75 lakh for special category states) may opt for the Composition Scheme, provided they meet specific conditions, such as not being involved in inter-state supply, manufacturing certain goods, or supplying services (with some exceptions).
What are the main advantages of registering under the Composition Scheme?
Key advantages include a reduced tax liability due to lower GST rates, simplified compliance with fewer returns to file, and relief from maintaining detailed records like input tax credit, making it easier for small businesses to manage their tax obligations.
Are there any restrictions or disadvantages for taxpayers under the Composition Scheme?
Yes, taxpayers under the Composition Scheme cannot claim Input Tax Credit (ITC), are not allowed to make inter-state supplies, cannot issue tax invoices (only a Bill of Supply), and cannot collect GST from their customers. This can limit their business operations and attractiveness to larger businesses seeking ITC.
How do Composition Scheme taxpayers typically file their GST returns?
Taxpayers under the Composition Scheme generally file a quarterly return, Form GSTR-4, by the 18th of the month succeeding the quarter. They also need to file an annual return in Form GSTR-4 by April 30th of the next financial year.