CCI Online Learning
What do you want to learn today?
     
CIBIL

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Composition to Regular


jacinthamary (accountant)     09 August 2020

jacinthamary
accountant 
 22 likes  409 points

| My Other Post

GST cancelled by suo motto on 31 July 2019.
1)Is it possible to revoke by filing the pending returns up to Q1 of FY2019-20?
2) After revoking can we move from composition to regular now or wait till April 2021?
3)What is composition 6% GST?
4)Is it eligible for service provider (flex and poster printing service)?

avater

Atif Khan   09 August 2020

Atif Khan

 5 likes  137 points

View Profile | My Other Post

If the GST has been cancelled Suo Moto by Officer due to non filing of returns.. You should First File the Pending Returns upto date and than apply to officer for revocation.
in case it is not possible to file pending returns due to suspension of GST registration.. You may first request the officer to revoke the cancellation and file the returns upto date..

You can move from Composition to Regular in between the year by filing CMP 04 and if you also have ITC than you can also file ITC 01.
Composition 6% is basically a Concessional Tax Rate Rate Scheme..
Composition Scheme was for Manufacture, Trader, Restaurant Service provided. Hence many Small Business specially Service providers were ineligible for Composition. So Govt introduced Concessional Tax Rate Scheme 6% for those person..
one of the Condition for Concessional Tax Rate Scheme is that a person should be ineligible for Composition scheme than only he can apply for Concessional Scheme..
hence if you are eligible for Composition Scheme you cannot opt for Concessional Rate Tax Scheme irrespective of you opted for Composition or not.

avater

jacinthamary (accountant)     09 August 2020

jacinthamary
accountant 
 22 likes  409 points

View Profile | My Other Post

Before apply for revoke we have file the pending returns ie up to Apr-Jun of 2019. So we have to file under composition type till Jun 2019. Is it possible to change from composition to regular mid of financial year?

avater

Atif Khan   09 August 2020

Atif Khan

 5 likes  137 points

View Profile | My Other Post

What is the date of Cancellation ?

avater

jacinthamary (accountant)     09 August 2020

jacinthamary
accountant 
 22 likes  409 points

View Profile | My Other Post

31-Jul-2019. Cancelled because dealer not filed returns for three consecutive quarter

avater

Atif Khan   09 August 2020

Atif Khan

 5 likes  137 points

View Profile | My Other Post

Yes file returns upto Apr-June 2019.. than you should apply for Revocation.
once the Cancellation order is revoked You should file the Returns for the further remaining period i.e upto July 20..

Hence I think you should file under Composition only upto Jan-Mar 2020..
or you can also file upto Apr-Jun 2020...
as you can opt out composition even Middle of year...

avater

jacinthamary (accountant)     09 August 2020

jacinthamary
accountant 
 22 likes  409 points

View Profile | My Other Post

Thanks a lot sir

avater

Atif Khan   09 August 2020

Atif Khan

 5 likes  137 points

View Profile | My Other Post

One thing to be noted.. Once you opt out Composition you become liable to pay under normal GST rate..
Hence if you opt out from Apr 20.. You will be liable to pay GST under normal rate from own pocket (even tho you have not collected from customer)
Hence you should file under Compo till Apr-Jun 20... or July-Sep 20...
than Suo Moto Opt Out Compo by filing CMP 04.. so that you don't have to pay at normal rates from own pocket for Past periods..

avater

Pankaj Rawat (GST Practitioner)     09 August 2020

Pankaj Rawat
GST Practitioner 
 3496 likes  47334 points

View Profile | My Other Post

1. Yes
2. No.....can switch only by 31/3/21
3. As per Sub-section 2A of section 10 of CGST Act , any person who is engaged in supply of Services or Goods or both can opt for Composition scheme & need to pay GST @ 6% on Turnover (without ITC) .
Turnover should not exceeding 50 lac in Preceding FY.

4 Yes

avater

Atif Khan   10 August 2020

Atif Khan

 5 likes  137 points

View Profile | My Other Post

For opting in Composition you can do it only at the beginning of FY..

But for Opting Out Compo.
Three ways to opt out Compo..
1) Wants to opt out of Composition Scheme voluntarily
2) Turnover exceeds limits
3) Fails to fulfill any of the conditions for availing the scheme.

Thus if turnover exceed or Violates any condition.. within 7 days you need to Opt Out Compo by filing CMP 04 and register as Normal Person.

Therefore, you can Opt out Voluntary also at any time ... Option will be available on website..

Further, as per notification 2/2019 dated 07.03.2019 Concessional Tax Rate Scheme 6% (Link Below)
Point No 2 says - A person Registered u/s 10(1) i.e Compo Dealer is ineligible for Concessional Tax Rate 6%

Thus if you are Compo dealer already.. You cannot Apply for Concessional Rate...

https://www.google.com/url?q=https://www.cbic.gov.in/htdocs-cbec/gst/notfctn-2-2019-cgst-rate-english.pdf&sa=U&ved=2ahUKEwjlmdXw-Y7rAhXDxTgGHYfcDE8QFjAAegQIBBAB&usg=AOvVaw27pzNVO1fUPf3XsmvyvLKn


https://cleartax.in/s/gst-cmp-04-filing


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  




Popular Discussion


view more »



Trending Tags
GST Live Class    |    x