The Goods and Services Tax Network (GSTN) has announced that taxpayers can opt for the Composition Scheme for the financial year 2025-26 by filing Form CMP-02 on the GST Portal. The opt-in window will be open from February 4 to March 31, 2025.
How to Apply for the Composition Scheme?
Eligible taxpayers can submit their application by following these steps on the GST Portal:
Navigate to: Services → Registration → Application to Opt for Composition Scheme
Ensure that Form CMP-02 is duly filled and submitted within the specified timeframe to avail of the benefits under the scheme.
Who Can Opt for the Composition Scheme?
The Composition Scheme is designed for small taxpayers to simplify GST compliance and reduce the tax burden. Businesses with an aggregate turnover up to ₹1.5 crore (₹75 lakh for select states) can opt for the scheme and pay GST at a fixed percentage of their turnover instead of regular tax rates.
Key Benefits of the Composition Scheme
- Lower tax rates and simplified compliance
- Quarterly tax payment instead of monthly
- Minimal paperwork and reduced compliance costs
Taxpayers already registered under the Composition Scheme must also file CMP-02 within this period to continue their enrollment for the next financial year.
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