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GST Composite to regular changed automatically

Vijith Sourav (Working as an Senior accounts executive ) (85 Points)

14 June 2018

Dear Experts,

One of my client GST registerd as a composite register. now it is changed as a regular from 1st April onwards, We didn't do any return for April to may now lot of interest will come. so can anyone help us in this regards

Note : our yearly sale is below 30 Lakhs only

Thanks in advance

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10 Replies

Mondira Saha (GST) (3925 Points)
Replied 14 June 2018

which type of business he doing pls mention ?

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R. B. Yadav (CMA, LLB) (Tax Consultant) (590 Points)
Replied 14 June 2018

assessee who are willing to opt composition scheme have to fill GST CMP 02 before commencement of financial year. Pls check whether your client filed this statement for fy 18-19 or not. if not, systems automatically converted it into regular scheme.

if they have filled above said statement, please check whether your client is fulfilling all conditions of composition scheme or not.

Mondira Saha (GST) (3925 Points)
Replied 14 June 2018

there is no provision about if he not filled cmp-02 then he automatically goes to regular

cmp-02 mendetroty but in this case this is not matter

R. B. Yadav (CMA, LLB) (Tax Consultant) (590 Points)
Replied 14 June 2018

please read CGST rule 3 sub rule 3(composition rule)

Mondira Saha (GST) (3925 Points)
Replied 14 June 2018

no mention there if you do not file your cmp-02.. your reg change to automatically regular ...

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R. B. Yadav (CMA, LLB) (Tax Consultant) (590 Points)
Replied 14 June 2018

madam ji,

please read the sentence " registered person who opt to pay tax under section 10......….............. shall file statement in gst CMP -02 ,...............prior to commencement of financial year for which option is exercised . if didn't file, it means you didn't opt that option and then only regular scheme is available.

Mondira Saha (GST) (3925 Points)
Replied 14 June 2018

dear pls clear what is CMP -02

this form is for migrated taxpayer .. who take reg regular but wants to change in composition then cmp-02 applicable

this query about automatically change from compositiin to regular not migrated

R. B. Yadav (CMA, LLB) (Tax Consultant) (590 Points)
Replied 14 June 2018

CMP -02 is an intimation form to opt the composition scheme validity of this intimation ends on 31st mar.
if you don't fill it for next year, registration will come under regular scheme w.e.f 01st Apr.

forget about the concept of migrated and new registration as gst is one year old act now.

Vijith Sourav (Working as an Senior accounts executive ) (85 Points)
Replied 14 June 2018

Dear All,

thanks for the value comments,

My client is running a printing press. He is printing a books.

He didn't file a CMP -02 , Now please tell me what to do next , For go back to composite scheme.

abhiabbas (erp consultant) (55 Points)
Replied 15 June 2018

sir

The registered person paying tax under section 10 may not file a fresh intimation every year and he may continue to pay tax under the said section subject to the provisions of the Act and these rules , so please chech that any other violation for composition leavy happened to your client