WFYI logo

Navigating the Process to Submit GST Form CMP-02

Taxpayers aiming to join the GST Composition Scheme must file Form CMP-02, a crucial step for notifying tax authorities. This guide outlines the online submission process on the official GST Portal, detailing each step from logging in to final application submission. It also covers important deadlines and clarifies the applicability of the scheme's rules based on the filing date. Upon successful filing, an acknowledgment is issued, and taxpayers must then proceed with filing Form GST CMP-03 within 90 days.

📖 3 min read read🏷️ GST Composition Scheme

Businesses seeking to register under the Composition Scheme within the Goods and Services Tax (GST) framework must notify the tax authorities. This notification is completed by submitting either Form GST CMP-01 or Form GST CMP-02.Form CMP-01 was designed for taxpayers who transitioned to GST and wished to join the Composition Scheme, with an initial deadline of August 1, 2017 (one month from July 2017). For subsequent financial years or during an ongoing financial year, a taxpayer intending to opt for the Composition Scheme must formally communicate their decision by filing GST CMP-02. If this form is submitted mid-financial year, the provisions of the scheme become effective from the month immediately following the filing month. For instance, if a taxpayer files CMP-02 in December 2017, the Composition Scheme regulations would apply starting January 2018. Both CMP-01 and CMP-02 are filed electronically via the GST Portal, following a consistent online procedure.

Recent Updates on CMP-02 Filing

  • February 6, 2023: Taxpayers eligible for the Composition Scheme, including those currently registered and new applicants for FY 2023-24, were required to submit their declaration using Form CMP-02 on the GST portal by March 31, 2023.
  • February 24, 2022: Similar to the above, composition taxpayers and new entrants for FY 2022-23 needed to submit their CMP-02 declaration on the GST portal by March 31, 2022.
  • March 23, 2021: The deadline for filing Form CMP-02 to maintain eligibility under the composition scheme for the upcoming FY 2021-22 was March 31, 2021.
  • February 15, 2021: The final date for opting into the composition scheme for FY 2021-22 via Form CMP-02 was March 31, 2021. The GST portal made the option to join the composition scheme available for taxpayers.

Step-by-Step Guide for Filing GST CMP-02

Here’s a detailed guide on how to submit Form GST CMP-02 through the official GST Portal:

Accessing the GST Portal

  1. Log in to the official GST Portal.
  2. Navigate through the menu: select ‘Services’ > ‘Registration’ > then ‘Application to Opt for Composition Levy’.

Completing the Declaration

  1. On the application screen, thoroughly review the 'Composition Declaration' and 'Verification' sections. Mark the checkbox to confirm your agreement.
  2. From the provided drop-down menu, select the ‘Name of Authorized Signatory’.
  3. Enter the ‘Place’ of filing and then click on the ‘SAVE’ button.

Submitting the Application

  1. For Companies and Limited Liability Partnerships (LLPs), submission of the application is exclusively via Digital Signature Certificate (DSC). Other types of registrants have the flexibility to use any of the three available submission methods.
  2. A warning pop-up window will appear; click ‘PROCEED’ to continue.

Following successful submission, a confirmation message will be displayed on the screen. Additionally, an acknowledgment will be sent to the taxpayer’s registered email address and mobile number.

After completing Form CMP-02, a taxpayer operating under the Composition Scheme is subsequently required to file GST CMP-03 within a 90-day timeframe. For further guidance, refer to the Guide to File CMP-03 on GST Portal.

Further Reading

Frequently Asked Questions

What is the purpose of GST Form CMP-02?
GST Form CMP-02 is used by taxpayers to formally declare their intention to opt into the Goods and Services Tax (GST) Composition Scheme for a financial year or during the middle of an ongoing financial year.
Who is eligible to file GST CMP-02?
Any taxpayer who wishes to enroll in the GST Composition Scheme for a financial year, or wants to switch to it mid-year, is eligible to file Form CMP-02.
What is the deadline for filing CMP-02 for a financial year?
While specific deadlines can vary, typically taxpayers interested in opting for the Composition Scheme for an upcoming financial year must file Form CMP-02 by March 31st of the preceding financial year.
What happens after filing GST CMP-02?
After successfully filing Form CMP-02, the Composition Scheme rules become applicable from the subsequent month (if filed mid-year). The taxpayer then needs to file GST Form CMP-03 within 90 days.
Can a taxpayer switch from the regular GST scheme to the Composition Scheme mid-year?
Yes, a taxpayer can opt for the Composition Scheme in the middle of a financial year by filing GST CMP-02. In such cases, the scheme's provisions will apply from the month immediately following the month of filing.