Composition scheme

Can we opt out of composition scheme if turnover is less than 40 lakhs( earlier registered as turnover limit was 20lakhs)?
Replies (9)
Quick Summary
This discussion clarifies the Goods and Services Tax (GST) composition scheme. The turnover limit for opting into the scheme is ₹1.5 crore (or ₹75 lakh for special category states), not the ₹40 lakh registration threshold. If your turnover falls below the registration limit, you are not liable for GST. However, opting out of the composition scheme or cancelling GST registration are separate processes. Cancellation requires filing an application via the GST portal and a final return (GSTR 10), and it has disadvantages like losing Input Tax Credit (ITC) and being unable to make inter-state supplies.

Nikita ji
Limit for Composition scheme is 1.5 Crores (75 Lakh for special category states)..You can opt for composition scheme under GST, if your turnover is less than above limit i.e 1.5 Crores or 75 lakhs as the case may be.

I think you are talking about GST registration
because limit mentioned by you is limit for Registration under GST.
Yes Sagar ji, once you are above the threshold limit..you are liable to register under gst. Then one can choose between composition and normal. If a person is no longer crossing the threshold limit, they can opt out of composition and are further not required to pay any Gst right?
Also if possible can you tell me the procedure to opt out
No, Nikita ji...it's not like that..

If turnover of any person is more than 20 lakh (now 40 lakh ,if you satisfy some conditions) than that Person required to take GST Number.
In GST registration, there is two scheme
1. Regular Scheme : in this scheme you collect GST from Customer, take ITC of your eligible purchase and than pay net tax liability in GSTR 3B.
2. Composition scheme : in this you can not collect tax from Customer, and also can claim ITC on Purchase. You have to pay tax @ 1% ect..as applicable on you turnover via form CMP 08

Any Person can adopt normal Scheme.
but person can adopt composition Scheme, only When your Turnover below 1.5 cr or 75 lakh.

I think you are taking about "cancellation of GST registration"...
if you cancel your GST registration, than only, thereafter you are not required to pay any GST.
Sagar ji, Can you please tell me which form is to be filed for cancellation of registration
You can file "Application for cancellation of registration" online as per below steps:

Login to GST Portal
Go to service tab>>Registration tab>>Application for cancellation of Registration.
File that Application.

Before filing Application make sure that you file all the return as applicable i.e monthly/ quarterlly return.

And after cancellation of Registration, you are also required to file one Final Return i.e GSTR 10

Note : Registration limit increase to 40 lakh is applicable only if you are dealing exclusively in Goods... Otherwise 20 lakh limit is only applicable.
Thank you so much Sagarji...
Is there any disadvantage of cancellation of registration of gst?
It's depends upon what is your business, your Turnover, your purchase & sale, you are dealing with Registered person or unregistered, business requirements ect...

But Generally some disadvantages like
1. You can not take ITC on Purchase.(So now it's you cost)
2. You can not make inter state Supply.
3. Can't issue GST invoice (Some buyer, if they are GST registered demand GST invoice)
ect...
Thank you!!
Most welcome.......

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