{"id":21925,"date":"2024-10-09T13:05:05","date_gmt":"2024-10-09T07:35:05","guid":{"rendered":"https:\/\/piceapp.com\/blogs\/?p=21925"},"modified":"2024-12-26T12:45:48","modified_gmt":"2024-12-26T07:15:48","slug":"how-to-file-cmp-02-in-gst","status":"publish","type":"post","link":"https:\/\/piceapp.com\/blogs\/how-to-file-cmp-02-in-gst\/","title":{"rendered":"Complete Procedure for Filing CMP-02 on GST Portal"},"content":{"rendered":"\n<div class=\"wp-block-group has-background\" style=\"background-color:#f2f5f9\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<h3 class=\"wp-block-heading\">Key Takeaways<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>GST CMP-02 is required to opt into the GST composition scheme, offering lower tax rates for small businesses.<\/li>\n\n\n\n<li>It can be filed any time during the year, with rules applying from the next month.<\/li>\n\n\n\n<li>CBIC mandates electronic filing and verification of CMP-02, with timely submission of Form GST ITC-03.<\/li>\n\n\n\n<li>Ineligible taxpayers include interstate suppliers, TDS deductors, and specific manufacturers.<\/li>\n\n\n\n<li>Filing CMP-02 online is simple via the GST portal with step-by-step guidance.<\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n<p>Registering under the GST composition scheme offers several advantages to taxpayers, including lower tax rates. With reduced tax payments, small businesses can maintain higher liquidity, freeing up <a href=\"https:\/\/www.investopedia.com\/terms\/w\/workingcapital.asp\" target=\"_blank\" rel=\"noopener\">working capital <\/a>and supporting business growth.<\/p>\n\n\n\n<p>To avail all these benefits, they will first have to qualify for this scheme. Once they do, they will need to fill out the CMP-02 form. If you are a GST-<a href=\"https:\/\/www.investopedia.com\/terms\/t\/taxpayer.asp\" target=\"_blank\" rel=\"noopener\">registered taxpayer <\/a>and are willing to reap the benefits of this scheme, this blog is for you. <\/p>\n\n\n\n<p>Read on to learn about the latest updates, eligibility, and <strong>how to file CMP 02 in GST.<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What Is GST Form CMP-02?&nbsp;<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"900\" height=\"506\" src=\"https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2024\/10\/What-Is-GST-Form-CMP-02-.png\" alt=\"What Is GST Form CMP-02?\" class=\"wp-image-22014\" style=\"aspect-ratio:16\/9;object-fit:cover\" title=\"\" srcset=\"https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2024\/10\/What-Is-GST-Form-CMP-02-.png 900w, https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2024\/10\/What-Is-GST-Form-CMP-02--300x169.png 300w, https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2024\/10\/What-Is-GST-Form-CMP-02--768x432.png 768w\" sizes=\"auto, (max-width: 900px) 100vw, 900px\" \/><figcaption><\/figcaption><\/figure>\n\n\n\n<p>A normal taxpayer who wants to register under the composition scheme must furnish the GST CMP-02. This form can be filed anytime in a <a href=\"https:\/\/www.collinsdictionary.com\/dictionary\/english\/financial-year#:~:text=A%20financial%20year%20is%20a,compare%20with%20the%20calendar%20year.\" target=\"_blank\" rel=\"noopener\">financial year <\/a>or the middle of the year. When a person files this form under the composition scheme, the rules will be applicable from the succeeding month. Suppose a person furnishes this form and uploads tax invoices in January 2025, the rules will be applicable from February.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Latest Update on GST CMP-02 by the CBIC<\/strong><\/h2>\n\n\n\n<p>As per the latest updates on GST CMP-02 by the CBIC, the registered person under Section 10 of the current financial year needs to go for electronic filing of the intimation in form GST CMP-02. They will need to sign this form by visiting the <a href=\"https:\/\/www.lawinsider.com\/dictionary\/facilitation-centre#:~:text=Sample%201-,Facilitation%20Centre%20means%20a%20center%20where%20the%20facilities%20like%20sale,the%20On%20Line%20Application%20form.\" target=\"_blank\" rel=\"noopener\">facilitation centre<\/a> or the online portal. <\/p>\n\n\n\n<p>The commissioner must verify the form before submission is completed. Moreover, people need to submit Form GST ITC-03 as per sub-rule (4) of rule 44 within the specified time frame.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>CBIC Advisory for the GST Composition Scheme<\/strong><\/h2>\n\n\n\n<p>The CBIC has also issued an advisory for the GST payments under the composition scheme for the people filing the GST CMP-02 form.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Who Can Opt for the GST Composition Scheme?<\/strong><\/h2>\n\n\n\n<p>Usually, every taxpayer is eligible to register under the composition scheme and streamline GST payments. To successfully complete the registration process, you will need to fill out the GST CMP-02 form. However, you must submit the form on or before 31<sup>st<\/sup> March of the current financial year.<\/p>\n\n\n\n<p>You should note that there is no reason to re-apply for a composition scheme for tax payment every year. However, when filing returns under this scheme, you will need to fill out Form GST ITC-03, to claim reversal of Input Tax Credit on stocks of<a href=\"https:\/\/www.netsuite.com\/portal\/resource\/articles\/inventory-management\/semi-finished-goods.shtml\" target=\"_blank\" rel=\"noopener\"> semi-furnished goods<\/a>, input products and finished goods.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How to Pick up the Composition Scheme Under GST?<\/strong><\/h2>\n\n\n\n<p>Once a taxpayer successfully logs in to the GST portal, they will need to follow a set of steps to register under the composition scheme. These include:<\/p>\n\n\n\n<p><strong>Step 1:<\/strong> Move to the official unified portal of GST.<\/p>\n\n\n\n<p><strong>Step 2:<\/strong> Log in at the taxpayer\u2019s interface using your credentials.<\/p>\n\n\n\n<p><strong>Step 3:<\/strong> Move to the \u2018Services\u2019 tab on the homepage.<\/p>\n\n\n\n<p><strong>Step 4:<\/strong> Select \u2018Registration\u2019 to move to the application form for opting composition scheme.<\/p>\n\n\n\n<p><strong>Step 5:<\/strong> Fill out the form by accurately entering all the information.<\/p>\n\n\n\n<p><strong>Step 6:<\/strong> Cross-check the inputs to minimise errors and submit the form.<\/p>\n\n\n\n<p>You should also find out if you are eligible to apply under the composition scheme before beginning the application process.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Who Are Eligible Taxpayers for the Composition Scheme?<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"900\" height=\"506\" src=\"https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2024\/10\/Who-Are-Eligible-Taxpayers-for-the-Composition-Scheme.png\" alt=\"Who Are Eligible Taxpayers for the Composition Scheme?\" class=\"wp-image-22015\" style=\"aspect-ratio:16\/9;object-fit:cover\" title=\"\" srcset=\"https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2024\/10\/Who-Are-Eligible-Taxpayers-for-the-Composition-Scheme.png 900w, https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2024\/10\/Who-Are-Eligible-Taxpayers-for-the-Composition-Scheme-300x169.png 300w, https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2024\/10\/Who-Are-Eligible-Taxpayers-for-the-Composition-Scheme-768x432.png 768w\" sizes=\"auto, (max-width: 900px) 100vw, 900px\" \/><figcaption><\/figcaption><\/figure>\n\n\n\n<p>Listed below are the categories of taxpayers who are not eligible to register under the composition scheme:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>GST-registered taxpayers with an average turnover of up to \u20b91.5 crore in the previous financial year on a single PAN.<\/li>\n\n\n\n<li>A taxable person with an average turnover of up to \u20b975 lakh in the previous financial year on a single PAN and enrolled in the states of Manipur, Arunachal Pradesh, Meghalaya, Nagaland, Mizoram, Tripura, Sikkim and Uttarakhand.<\/li>\n\n\n\n<li>Registered taxpayers with an average turnover of up to \u20b950 lakh in the previous financial year on a single PAN and involved in mixed taxable supplies or supplying services.<\/li>\n<\/ul>\n\n\n\n<p>Apart from this, you should be aware of the group of taxpayers who cannot apply under the composition scheme as per GST rules.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Who are Not Eligible Taxpayers for the Scheme?<\/strong><\/h2>\n\n\n\n<p>Following are the groups of taxpayers who are not eligible to register under the composition scheme:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>People involved in the supply of some specific goods mentioned under the GST Act<\/li>\n\n\n\n<li>A taxable person who is involved in the inter-state supplies of goods<\/li>\n\n\n\n<li>Assessee who pays taxes under Section 52 and supplies goods via e-commerce operators<\/li>\n\n\n\n<li>Casual dealers involved in selling various consumer products<\/li>\n\n\n\n<li>A non-resident taxable person conducting business in India<\/li>\n\n\n\n<li>Manufacturers of products such as ice cream and other edible ice products&nbsp;<\/li>\n\n\n\n<li>A person who is registered under GST as a TDS Deductor or Tax Collector<\/li>\n\n\n\n<li>A person who is registered under GST as an Input Service Distributor (ISD)<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Stock Intimation Details Submission<\/strong><\/h2>\n\n\n\n<p>It is compulsory for all taxpayers registered under the composition scheme to submit the <a href=\"https:\/\/tutorial.gst.gov.in\/userguide\/compositionpoc\/intimationofstockdetailscomposition.htm\" target=\"_blank\" rel=\"noopener\">stock intimation <\/a>details as per the mentioned guidelines on the official portal.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Step-by-step Guide to File GST CMP-02 on GST Portal<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" title=\"How To File CMP02 for Composition scheme on GST portal  | How to file CMP 02 | CMP02 Filing\" width=\"640\" height=\"360\" src=\"https:\/\/www.youtube.com\/embed\/kESzCEjKFYw?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<p>With the digitisation of the processes, GST CMP-02 can be easily filed online. The steps for filing this form on the GST portal are as follows:<\/p>\n\n\n\n<p><strong>Step 1:<\/strong> Navigate to the official GST website and log in using your credentials.<\/p>\n\n\n\n<p><strong>Step 2:<\/strong> Move to the \u2018Services\u2019 section and choose \u2018Registration\u2019 from available options.<\/p>\n\n\n\n<p><strong>Step 3:<\/strong> Next, click on the \u2018Application to Opt for Composition Levy\u2019 button.<\/p>\n\n\n\n<p><strong>Step 4:<\/strong> Go through the composition declaration and verification requirements and tick the checkbox.<\/p>\n\n\n\n<p><strong>Step 5:<\/strong> After that, select the \u2018Name of Authorised Signatory\u2019 from the dropdown list.<\/p>\n\n\n\n<p><strong>Step 6:<\/strong> Next, enter the name of the place and click on the \u2018Save\u2019 button.<\/p>\n\n\n\n<p><strong>Step 7:<\/strong> Submit a DSC if you are a company or an LLP.<\/p>\n\n\n\n<p><strong>Step 8:<\/strong> Once done, a pop-up message appears on your screen containing a warning. Click on the \u2018Proceed\u2019 button.<\/p>\n\n\n\n<p>Upon submission of your application, you will see a success message on your screen. Moreover, you will receive an<a href=\"https:\/\/www.merriam-webster.com\/dictionary\/acknowledgment\" target=\"_blank\" rel=\"noopener\"> acknowledgement<\/a> on your mobile number and registered email ID.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Conclusion<\/strong><\/h2>\n\n\n\n<p>Learning <strong>how to file CMP-02 in GST<\/strong> along with the complete details of the form is essential as any mistake can lead to severe penalties. It is advisable to keep checking the latest updates from the tax authorities regarding the CMP-02 form. This will help you stay updated regarding this form and adhere to the regulations to reap maximum benefits.<\/p>\n\n\n\n<p class=\"has-ast-global-color-4-background-color has-background\">\ud83d\udca1If you want to streamline your payment and make GST payments, consider using\u00a0<a href=\"https:\/\/piceapp.com\/\">the PICE App<\/a>. Explore the PICE App today and take your business to new heights.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">FAQs<\/h3>\n\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-1728453080462\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><strong>What is GST CMP-02?<\/strong><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>GST CMP-02 is a form required for taxpayers who wish to opt for the GST composition scheme. This scheme allows small businesses to pay a lower, fixed rate of tax. Once filed, the composition scheme rules apply from the following month. The form can be submitted electronically on the GST portal.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1728453081947\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><strong>Who can opt for the GST composition scheme?<\/strong><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Taxpayers with a turnover up to \u20b91.5 crore in the previous financial year can opt for the composition scheme. However, special limits apply to states like Manipur and Uttarakhand, where the turnover threshold is \u20b975 lakh. Businesses supplying mixed taxable goods or services can also opt if their turnover does not exceed \u20b950 lakh.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1728453088400\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><strong>Who is not eligible for the GST composition scheme?<\/strong><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Taxpayers involved in interstate supply of goods, e-commerce operators, manufacturers of restricted items like ice cream, non-resident taxable persons, and TDS deductors cannot opt for the composition scheme. Additionally, casual taxable persons are also ineligible.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1728453099576\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><strong>What is the deadline to file GST CMP-02?<\/strong><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>To avail the composition scheme for a financial year, CMP-02 must be filed on or before 31st March of the previous financial year. However, taxpayers can also file the form in the middle of the year, and the scheme will apply from the following month.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1728453112096\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><strong>How can I file GST CMP-02 online?<\/strong><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>To file CMP-02 online, log into the GST portal, go to the &#8216;Services&#8217; section, and select &#8216;Application to Opt for Composition Levy.&#8217; After filling out the necessary details and completing the verification, submit the form. A success message will confirm submission, and an acknowledgement will be sent to your registered email and mobile number.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Registering under the GST composition scheme offers several advantages to taxpayers, including lower tax rates. With reduced tax payments, small businesses can maintain higher liquidity, freeing up working capital and supporting business growth. To avail all these benefits, they will first have to qualify for this scheme. Once they do, they will need [&hellip;]<\/p>\n","protected":false},"author":7,"featured_media":22013,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-21925","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-gst"],"_links":{"self":[{"href":"https:\/\/piceapp.com\/blogs\/wp-json\/wp\/v2\/posts\/21925","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/piceapp.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/piceapp.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/piceapp.com\/blogs\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/piceapp.com\/blogs\/wp-json\/wp\/v2\/comments?post=21925"}],"version-history":[{"count":1,"href":"https:\/\/piceapp.com\/blogs\/wp-json\/wp\/v2\/posts\/21925\/revisions"}],"predecessor-version":[{"id":57086,"href":"https:\/\/piceapp.com\/blogs\/wp-json\/wp\/v2\/posts\/21925\/revisions\/57086"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/piceapp.com\/blogs\/wp-json\/wp\/v2\/media\/22013"}],"wp:attachment":[{"href":"https:\/\/piceapp.com\/blogs\/wp-json\/wp\/v2\/media?parent=21925"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/piceapp.com\/blogs\/wp-json\/wp\/v2\/categories?post=21925"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/piceapp.com\/blogs\/wp-json\/wp\/v2\/tags?post=21925"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}