Guide to Submitting Form CMP-03 on the GST Portal

Taxpayers enrolled in the GST Composition Scheme must submit Form CMP-03 to declare their existing stock at the time of opting into the scheme. This essential form provides details of stock from both registered and unregistered dealers and must be filed within 90 days after submitting Form CMP-02. The process involves downloading an Excel template from the GST portal, inputting stock information, validating the data, and then uploading the generated file. Final submission requires updating the electronic ledger and digital verification to generate an Application Reference Number.

📖 3 min read read🏷️ Composition Scheme

Taxpayers who choose the Composition Scheme must inform the government about their existing stock on the date they joined the scheme. This stock information is submitted using Form GST CMP-03. This form must be filed within 90 days following the submission of Form CMP-02. For instance, if a Composition Dealer submitted CMP-02 on November 25, 2017, they would need to file their stock details in CMP-03 by February 23, 2017.

Recent Updates

February 24, 2022
Individuals eligible for the composition scheme, including those seeking to enroll for Financial Year 2022-23, were required to submit their declaration in Form CMP-02 via the GST portal by March 31, 2022.

March 23, 2021
The deadline for filing Form CMP-02 to maintain eligibility for the composition scheme in the upcoming Financial Year 2021-22 was March 31, 2021.

February 15, 2021
The registration window for the composition scheme for Financial Year 2021-22 using Form CMP-02 closed on March 31, 2021. The option to enroll in the composition scheme was made available to taxpayers on the GST portal.

Step-by-Step Guide for Filing CMP-03 on the GST Portal

Step 1: Access the GST Portal

Begin by logging into the official GST Portal.

Step 2: Navigate to Stock Intimation

Go to 'Services', then 'Registration', and finally select 'Stock intimation for opting Composition Levy'.

Step 3: Download the Template

Click the 'DOWNLOAD TEMPLATE' button to obtain the required file.

Step 4: Extract the Excel File

Download and then unzip the provided Excel Template file.

Step 5: Enable Macros in Excel

Open the Excel file and click 'Enable Content' at the top to activate macros, which are necessary for the file's functionality.

Step 6: Input GSTIN

Enter your Goods and Services Tax Identification Number (GSTIN).

Step 7: Add Rows for Stock Details

Click 'Insert Rows'. A pop-up window will appear where you must specify the total number of rows needed in the Excel sheet for your stock details.

Stock details must be categorized into two groups:

Purchases made from registered dealers.
Purchases made from unregistered dealers.

Step 8: Validate Entered Information

After all details have been input, click the 'Validate' button. If any errors are detected, a pop-up will display them. Correct these issues and re-validate the data.

Step 9: Generate Upload File

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 then upload to the GST Portal/GSTN. A confirmation message will confirm successful download and provide the save location.

Step 10: Upload the CMP-03 File

Return to the GST Portal and navigate to the 'Stock intimation for opting Composition Levy' section. Click 'Choose File', select your prepared CMP-03 file, and then click 'UPLOAD AND VALIDATE'.

Step 11: Update Ledger Balance

Upon successful file upload, the tax due on your stock will be computed and shown under 'Details of tax paid'. Proceed by clicking 'Update Ledger Balance'. Your Electronic Liability Ledger balance will increase. This outstanding liability must be settled using the funds available in your Electronic Cash Ledger. After this payment, a 'Debit Entry No.' will be generated, and a success confirmation will appear.

Step 12: Final Submission

Tick the 'Verification' checkbox, select the 'Name of Authorized Signatory', and fill in the 'Place' field. Finally, submit Form CMP-03 using either DSC (Digital Signature Certificate), E-SIGN, or EVC (Electronic Verification Code). On successful submission, a confirmation message will be displayed, along with your unique Application Reference Number (ARN).

Frequently Asked Questions

What is the GST Composition Scheme?

The GST Composition Scheme is an alternative method of GST compliance for small taxpayers, allowing them to pay GST at a fixed turnover rate instead of the regular GST rates. This simplifies tax filing and reduces compliance burden.

Who is eligible to opt for the GST Composition Scheme?

Businesses with an annual turnover below a specified threshold (currently Rs. 1.5 crore for most states, and Rs. 75 lakh for certain special category states) can opt for the Composition Scheme, provided they meet other eligibility criteria, such as not being engaged in inter-state supply, e-commerce, or manufacturing specific goods.

What is the difference between regular GST and the Composition Scheme?

Under regular GST, taxpayers charge GST on sales, claim Input Tax Credit (ITC) on purchases, and file detailed monthly/quarterly returns. Composition dealers, however, pay a fixed percentage of their turnover as tax, cannot charge GST from customers or claim ITC, and file simplified quarterly statements and an annual return.

Are there any restrictions for businesses under the Composition Scheme?

Yes, businesses under the Composition Scheme cannot claim Input Tax Credit, cannot make inter-state supplies, cannot supply goods through an e-commerce operator, and are restricted from manufacturing certain notified goods. They must also issue bills of supply instead of tax invoices.

How frequently do Composition dealers need to file returns?

Composition dealers are required to file a quarterly statement in Form CMP-08, summarizing their turnover and tax payable, and an annual return in Form GSTR-4 by April 30th of the subsequent financial year.