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From composition to regular gst

SSG (1936 Points)

06 September 2017

A person has opted for Composition Scehem under GST in July. He now wants to switch to normal GST, voluntarily. Can he do so? Please advise.

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8 Replies

anonymous (student) (750 Points)
Replied 06 September 2017

yeah he can..

also of the turnover exceeds 75l then automatically he will be treated as normal tax payer

Sumeet (CA) (537 Points)
Replied 06 September 2017

Yes. The registered person who intends to withdraw from the composition scheme can file a duly signed or verified application in FORM GST CMP-04. Every person who has filed an application for withdrawal from the composition scheme, may electronically furnish, a statement in FORM GST ITC-01 containing details of the stock of inputs and inputs contained in semi-finished or finished goods held in stock by him on the date of withdrawal, within a period of thirty days of withdrawal.

FORM GST CMP-04, is however not made available currently on gst website. It is expected to be available from 15th September. So you can fill the form online and opt out of composition scheme.

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SSG (1936 Points)
Replied 06 September 2017

CMP-04 is for withdrawl from composition levy. Do we need to file any other form for migrating to normal GST or withdrawl from composition scheme by filing CMP-04 will be considered as opting for normal scheme?

Sumeet (CA) (537 Points)
Replied 06 September 2017

You need to file GST ITC-01 also if you want to take credit of tax paid on stock held by you on the date of withdrawl, since you will be selling that stock at normal GST rate and not composition rate you are eligible for ITC on that stock. However its not mandatory to fill GST ITC-01.

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CA Rashmi Gandhi (Chartered Accountant) (86220 Points)
Replied 01 October 2017

Opt out option for composition started.

Sneha Sharma (Owner/founder) (29 Points)
Replied 06 December 2017

whether ITC 01 is available to be filled for claiming itc while opting out from composition to regular scheme ??
I have not find it anywhere in the portal, only for cmp 04 is available. Please help.