The Composition Levy Scheme under Section 10 of the CGST Act, 2017

I. The Composition Levy Scheme: An Overview

A. Defining the Composition Levy under Section 10, CGST Act

Section 10 of the Central Goods and Services Tax (CGST) Act, 2017, introduces the Composition Levy, an alternative method for levying Goods and Services Tax (GST).¹ It is designed as an optional scheme for eligible registered persons, primarily aimed at simplifying tax compliance for smaller businesses.³

The provision commences with a significant non-obstante clause: “Notwithstanding anything to the contrary contained in this Act…”.¹ This phrasing legally establishes that Section 10 overrides the standard GST levy mechanism prescribed under Section 9 of the CGST Act for taxpayers who choose to operate under the composition scheme. Instead of calculating GST on the value added at each stage, composition dealers pay tax at a predetermined percentage of their turnover.³

However, this override is not absolute. Section 10 explicitly states it is “subject to the provisions of sub-sections (3) and (4) of section 9”.¹ These sub-sections pertain to the Reverse Charge Mechanism (RCM), where the recipient of goods or services, rather than the supplier, is liable to pay GST. Consequently, even though composition dealers benefit from a simplified output tax calculation, they remain fully liable to pay GST under RCM on specified inward supplies (e.g., services from Goods Transport Agencies, legal services from advocates, or supplies from unregistered persons as applicable).¹ This persistence of RCM liability means the simplification offered by the scheme primarily benefits the calculation and payment of tax on outward supplies. Composition dealers must still identify RCM-applicable inward supplies, calculate the tax at the normal rates applicable to those supplies (not their concessional composition rate), and discharge this liability, typically through their electronic cash ledger.⁶ This adds a layer of complexity and cost back into what is intended as a simplified framework.

B. Purpose and Objectives: Simplifying GST for Small Taxpayers

The fundamental objective underpinning the Composition Levy scheme is to simplify the GST compliance burden for small taxpayers and reduce their associated costs.³ Recognizing that the regular GST framework, with its detailed invoicing, record-keeping, and monthly/quarterly return filing requirements, could be onerous for businesses with limited resources, the composition scheme offers a more straightforward alternative.⁹ It is an optional scheme, allowing eligible taxpayers to choose the regime that best suits their operational capacity.³

Key simplification benefits include:

Reduced Return Filing: Instead of multiple monthly or quarterly returns (like GSTR-1 and GSTR-3B), composition dealers generally file a simple quarterly statement for tax payment (Form CMP-08) and an annual return (Form GSTR-4).⁸
Simplified Tax Calculation: Tax is paid at a fixed, predetermined rate on turnover, eliminating the need to determine the applicable GST rate for each outward supply or worry about complex HSN (Harmonized System of Nomenclature) classifications.⁵
Less Elaborate Record Keeping: While basic records are necessary, the extensive record-keeping mandated under the regular scheme is generally not required.⁵

This focus on simplification allows small business owners to dedicate more time and resources to their core business activities rather than complex tax compliance procedures.⁹ However, this simplicity is achieved through a significant trade-off. The scheme imposes substantial restrictions, most notably the inability to claim Input Tax Credit (ITC) and the prohibition on making inter-state outward supplies.⁸ This inherent compromise means the scheme is not universally suitable for all small businesses based solely on turnover. It is strategically designed for, and most beneficial to, businesses with specific operational characteristics: typically small-scale, localized operations primarily engaged in intra-state B2C (Business-to-Consumer) transactions or supplying to unregistered businesses, where the inability to pass on ITC is less of a deterrent.

C. Legal Scope and Applicability

The Composition Levy scheme under Section 10 applies to eligible ‘registered persons’ under the CGST Act, 2017.¹ Initially, its scope was primarily limited to suppliers of goods and those providing restaurant services (not serving alcohol).³ Recognizing the need to extend simplification benefits further, the scheme’s scope was later broadened. Amendments and specific notifications introduced provisions allowing certain other service providers to opt for a similar composition scheme, albeit with a lower turnover threshold and a different tax rate.¹

A critical aspect of the scheme’s applicability is that both eligibility determination (based on aggregate turnover) and the decision to opt-in are made at the level of the Permanent Account Number (PAN).³ This means if a person has multiple business registrations (GSTINs) under the same PAN across different states or for different business verticals within a state, the aggregate turnover of all such registrations is considered for eligibility.³ Furthermore, if a taxpayer decides to opt for the composition scheme for one registration, they must opt for it for all registrations under that PAN. Conversely, if even one registration under a PAN becomes ineligible for the scheme (for instance, by making inter-state outward supplies), then none of the registrations under that PAN can avail the composition scheme.¹ This ‘all-or-nothing’ PAN-level condition can pose challenges for diversified small businesses. An enterprise might have one business unit perfectly suited for the composition scheme (e.g., a local retail store) and another unit that is inherently ineligible (e.g., a small unit involved in e-commerce exports). Due to the PAN-level rule, the eligible unit cannot benefit from the scheme because of the activities of the ineligible unit under the same PAN. This necessitates careful business structuring and operational planning for multi-unit or multi-vertical enterprises considering the composition levy.

II. Eligibility for the Composition Scheme

A. Turnover Limits: Thresholds and Calculation Methodology

Eligibility for the Composition Levy scheme is primarily determined by the ‘aggregate turnover’ of a registered person in the preceding financial year. The specific thresholds have been revised since the inception of GST:

Suppliers of Goods and Restaurant Services (Section 10(1) & 10(2)): The standard threshold for aggregate turnover is $ \le $ ₹1.5 crore in the preceding financial year.⁴ This limit was increased from earlier thresholds of ₹50 lakhs and later ₹1 crore.³
Special Category States: For certain specified states (North-Eastern states and Himachal Pradesh, as per current notifications), a lower threshold of $ \le $ ₹75 lakhs applies.³ Initial limits were lower (e.g., ₹50 lakhs).³ It is essential to check the current list of states under this category as notified.
Eligible Service Providers (Section 10(2A) / Notification 2/2019-CT(R)): A separate scheme allows eligible service providers (and those with mixed supplies not eligible under the main scheme) to opt for composition levy if their aggregate turnover in the preceding financial year is $ \le $ ₹50 lakhs.⁴

Calculation of Aggregate Turnover:

The term ‘aggregate turnover’ is defined under Section 2(6) of the CGST Act. It is computed on an all-India basis for all registrations under the same PAN.3 It includes the value of:

All taxable supplies
Exempt supplies
Exports of goods or services or both
Inter-state supplies ¹

Crucially, aggregate turnover excludes:

Central tax (CGST), State tax (SGST), Union territory tax (UTGST), Integrated tax (IGST), and Cess.
The value of inward supplies on which tax is payable under the Reverse Charge Mechanism (RCM).³

For determining eligibility to opt for the scheme at the beginning of a financial year (or upon registration), the calculation includes the value of supplies made from the 1st of April of a financial year up to the date when the person becomes liable for registration under the Act.¹ A specific exclusion applies for the value of exempt supply of services provided by way of extending deposits, loans, or advances where the consideration is interest or discount; this income is not considered when calculating aggregate turnover for determining eligibility.¹

The inclusion of exempt supplies in the definition of aggregate turnover is a critical nuance.¹ This means a business might have taxable turnover well below the ₹1.5 crore limit, but if its exempt turnover is substantial, the combined aggregate turnover could exceed the threshold, rendering it ineligible. Businesses with significant exempt activities alongside taxable ones must therefore monitor their total outward supplies carefully. Conversely, the exclusion of interest/discount income from loans/deposits/advances provides targeted relief, preventing businesses from being disqualified merely due to such passive financial income.¹

Lapse of Option:

The option to pay tax under the composition scheme remains valid only as long as the taxpayer satisfies all conditions. If, during a financial year, the registered person’s aggregate turnover exceeds the specified limit (₹1.5 crore / ₹75 lakhs / ₹50 lakhs, as applicable), the option lapses from the day this limit is crossed.1 The taxpayer must then switch to the regular GST scheme and comply with its provisions from that date onwards.

B. Specific Exclusions: Who Cannot Opt In?

Section 10(2) and Section 10(2A) of the CGST Act, along with associated rules and notifications, explicitly prohibit certain categories of registered persons and specific types of supplies from being covered under the composition scheme. A taxpayer is ineligible if they are:

Engaged in the Supply of Services: Primarily, suppliers of services cannot opt for the main composition scheme under Section 10(1)/(2), except for restaurant services.¹ However, suppliers of goods/restaurants are allowed a marginal supply of other services ¹, and a separate scheme exists for other service providers with a ₹50 lakh turnover limit.¹
Supplying Non-Taxable Goods/Services: Persons engaged in making any supply of goods or services which are not leviable to tax under the GST Act (e.g., alcohol for human consumption) are ineligible.¹
Making Inter-State Outward Supplies: Any registered person making inter-state outward supplies of goods or services is barred from the scheme.¹ This restriction applies only to outward supplies; inter-state inward supplies (purchases) are permitted.⁶
Supplying through E-commerce Operators (ECOs): Persons making any supply of goods or services through an electronic commerce operator who is required to collect tax at source (TCS) under Section 52 cannot opt for the scheme.¹ This exclusion significantly impacts small businesses seeking to sell through major online marketplaces (like Amazon, Flipkart), as these platforms typically fall under the TCS provisions. Regardless of their turnover, such businesses are forced into the regular GST scheme, thereby losing the simplification benefits if they wish to utilize these popular e-commerce channels. This reflects a policy decision to keep the composition scheme separate from the complexities associated with monitoring e-commerce transactions.
Manufacturing Notified Goods: Manufacturers of certain goods notified by the Government on the recommendations of the GST Council are ineligible.¹ Commonly notified goods include ice cream (and other edible ice), pan masala, and tobacco and manufactured tobacco substitutes. Aerated water was also previously notified. Recent amendments have also excluded registered persons making supplies of specified actionable claims.³⁴
Casual Taxable Persons (CTP) and Non-Resident Taxable Persons (NRTP): These categories of taxpayers are explicitly excluded from opting for the composition scheme.⁷

C. Conditions for Eligibility: Including Marginal Service Supply

Beyond the turnover limits and specific exclusions, certain conditions must be met:

GST Registration: The person must be a registered taxpayer under the CGST Act.¹
Marginal Supply of Services (for Sec 10(1)/(2) Optants): A significant relaxation allows taxpayers primarily supplying goods or restaurant services (eligible under the main ₹1.5 Cr/₹75L scheme) to also supply other services up to a certain limit without becoming ineligible. This limit is the higher of:

10% of the turnover in the State or Union territory in the preceding financial year, OR
₹5 lakhs.¹ This provision acknowledges the practical reality that many small goods suppliers often provide ancillary services (e.g., minor alterations, installation, gift wrapping). The ₹5 lakh floor provides flexibility even for businesses with very low turnover. For calculating this 10% limit, the value of exempt services provided by way of extending deposits, loans, or advances (where consideration is interest or discount) is specifically excluded.¹

PAN-Level Uniformity: As mentioned earlier, if a registered person has multiple registrations under the same PAN, the composition scheme must be adopted uniformly across all such registrations. Opting in for one means opting in for all.¹

III. GST Rates Applicable to Composition Taxpayers

A primary attraction of the composition scheme is the concessional rate of tax payable on turnover. The applicable rates vary based on the category of the registered person:

Table 1: GST Rates under Composition Scheme

Category of Registered Person	Basis for Tax Calculation	CGST Rate	SGST/UTGST Rate	Total GST Rate	Relevant Section/Notification
Manufacturers (of eligible goods)	Turnover in State/UT	0.5%	0.5%	1%	Section 10(1)(a)
Traders (Suppliers of goods other than manufacturers/restaurants)	Turnover in State/UT	0.5%	0.5%	1%	Section 10(1)(c)
Restaurant Services (Not serving alcohol)	Turnover in State/UT	2.5%	2.5%	5%	Section 10(1)(b)
Eligible Service Providers (Turnover ≤ ₹50L)	Turnover in State/UT	3%	3%	6%	Section 10(2A) / Notfn. 2/2019-CT(R)
Brick Manufacturers (Specific types*)	Turnover in State/UT	3%	3%	6%	Specific Notification (e.g., 04/2022-CT)

* Includes building bricks, bricks of fossil meals or similar siliceous earths, earthen or roofing tiles, fly ash bricks/blocks. ¹¹

Basis for Tax Calculation:

It is imperative to note the distinction between ‘aggregate turnover’ used for determining eligibility and the base for calculating the tax liability under the composition scheme. Section 10(1) specifies that the tax percentage is applied to the “turnover in State or turnover in Union territory”.1 While not explicitly defined in the snippets provided in the same detail as ‘aggregate turnover’, this generally refers to the value of all outward supplies (taxable and exempt) made within that specific State or Union Territory by the registered person during the tax period. This base differs from the PAN-India ‘aggregate turnover’ (defined in Sec 2(6)) which includes exports and inter-state supplies for eligibility assessment.1 Applying the tax rate to the ‘turnover in State/UT’ ensures that the concessional tax is levied only on the intra-state activities intended to be covered by the scheme, and not on activities like exports which, while part of aggregate turnover, are outside the scope of composition tax payment.

IV. Operating Under the Composition Scheme: Conditions & Restrictions

Opting for the composition scheme entails adhering to a specific set of operating conditions and restrictions mandated by Section 10 and associated rules.

A. Input Tax Credit (ITC): The No-Claim Rule

One of the most significant conditions of the composition scheme is the absolute prohibition on claiming Input Tax Credit (ITC).⁴ Composition taxpayers cannot take credit for the GST paid on any of their inward supplies, whether goods or services. This includes the GST paid under the Reverse Charge Mechanism (RCM).⁶ The tax paid on inputs effectively becomes a cost for the business.

Furthermore, this restriction extends down the supply chain. Since a composition dealer cannot charge GST on their outward supplies, the recipient of goods or services from a composition dealer is also unable to claim any ITC on such purchases.⁸ This lack of ITC pass-through significantly impacts the attractiveness of sourcing from a composition dealer for regular registered businesses that rely on the ITC mechanism to reduce their tax burden. It effectively breaks the GST credit chain and tends to orient composition dealers towards supplying end consumers (B2C) or unregistered businesses, who are indifferent to ITC availability. This is a major strategic consideration for any business evaluating the scheme.

B. Tax Collection and Invoicing: Bill of Supply Mandate

Consistent with the inability to claim ITC, composition taxpayers are prohibited from collecting any tax from their customers on the supplies they make.⁴ The composition tax liability, calculated as a percentage of turnover, must be paid by the dealer out of their own funds.⁸

Consequently, composition dealers cannot issue a ‘Tax Invoice’. Instead, they are required to issue a ‘Bill of Supply’ for all their outward supplies.⁴ This document does not show any GST amount charged to the recipient. To ensure transparency and inform customers and tax authorities of their status, composition dealers must prominently mention the words “composition taxable person, not eligible to collect tax on supplies” on every Bill of Supply issued.⁸ Additionally, they are required to display the words “composition taxable person” on any notice or signboard displayed prominently at their principal place of business and any additional places of business.⁸

C. Supply Restrictions: Inter-State Outward Supplies Prohibition

A fundamental restriction under the composition scheme is the prohibition on making any inter-state outward supplies of goods or services.¹ This means a business registered under the composition scheme in one state cannot sell goods or provide services to a customer located in another state. This restriction inherently limits the geographical market reach of the business to within the boundaries of the state or Union Territory where it is registered.⁹ Export of goods or services is also considered an inter-state supply and is therefore barred under the scheme.⁴ This prohibition is a major constraint on business expansion and scalability, reinforcing the scheme’s design for small, localized businesses. Any business aiming for growth beyond its home state cannot utilize this scheme and must opt for regular GST registration. It is important to note that this restriction applies only to outward supplies; composition dealers are permitted to make inter-state purchases (inward supplies).⁶ A limited exception exists allowing inter-state outward supply of certain specified handicraft goods, though details require reference to specific notifications.¹⁴

D. Reverse Charge Mechanism (RCM) Applicability

As established earlier, the composition scheme operates subject to the RCM provisions of Section 9(3) and 9(4).¹ This means composition taxpayers are liable to pay GST under reverse charge on inward supplies of notified goods or services (like GTA, legal services, sponsorship services received from certain suppliers) or potentially on supplies received from unregistered persons, if applicable.¹

The tax payable under RCM must be calculated at the normal GST rates applicable to those specific goods or services, not at the concessional composition rates.⁶ Furthermore, the composition dealer cannot claim ITC on the tax paid under RCM.⁶ This makes RCM payments a direct cost to the business and necessitates compliance with identifying such supplies, calculating tax at standard rates, and paying it via the electronic cash ledger. This represents a ‘hidden’ cost and compliance burden within the simplified scheme. A recent significant relief was provided by the 55th GST Council, which recommended excluding composition taxpayers from the applicability of RCM on renting of commercial/immovable property received from unregistered persons ³⁷, mitigating a potentially widespread RCM liability for small businesses operating from rented premises.

E. Other Compliance Conditions

In addition to the major restrictions above, composition taxpayers must comply with other conditions:

Display Requirement: As noted, display “composition taxable person” on signboards at all places of business.⁸
PAN-Level Compliance: All registrations under the same PAN must adhere to the scheme’s conditions if opted for.¹
Continued Eligibility: The option to pay tax under composition remains valid only as long as all the conditions stipulated in Section 10 and relevant CGST Rules (primarily Rules 3 to 7) are continuously satisfied.³ Violation of any condition can lead to denial of the scheme’s benefits.

V. Compliance Framework for Composition Dealers

The compliance framework for composition taxpayers is designed to be simpler than that for regular taxpayers, primarily involving quarterly tax payments and an annual return.

A. Quarterly Tax Payment: Form GST CMP-08

Since FY 2019-20, composition taxpayers are required to pay their self-assessed tax liability on a quarterly basis using Form GST CMP-08.⁶ This form acts as a statement-cum-challan, where the taxpayer declares summary details of outward supplies, inward supplies attracting reverse charge, and calculates the tax payable for the quarter. It replaced the earlier requirement of filing a quarterly GSTR-4 return.⁸

The due date for filing Form GST CMP-08 and paying the tax is the 18th day of the month immediately succeeding the end of the quarter.⁶ For example, for the quarter ending June 30th, the due date is July 18th. Various extensions to this due date have been provided from time to time, particularly during the COVID-19 pandemic.⁷

Tax payment, including the composition tax on outward supplies, tax due under RCM, and any applicable interest, must be made by debiting the electronic cash ledger only.⁶ The electronic credit ledger cannot be used for discharging this liability, consistent with the scheme’s no-ITC rule.

The filing process is online via the GST portal. Taxpayers log in, navigate to the Return Dashboard, select the financial year and quarter, choose CMP-08, and prepare it online. They enter the required turnover details, calculate tax, add any interest for delay, save, preview the draft, make the payment through the cash ledger (generating a challan if needed), and finally file the statement using a Digital Signature Certificate (DSC) or Electronic Verification Code (EVC).¹⁹ A Nil CMP-08 can also be filed if there is no tax liability for the quarter.¹⁹

B. Annual Return Filing: Form GSTR-4

In addition to the quarterly tax payment via CMP-08, composition taxpayers must file an annual return in Form GSTR-4.⁶ This return consolidates the financial information for the entire year, including:

Summary of outward supplies made.
Details of inward supplies received from registered suppliers (including those attracting RCM).
Details of inward supplies received from unregistered suppliers.
Import of services.
A summary of the tax paid quarterly via Form CMP-08.
Details of Tax Deducted at Source (TDS) / Tax Collected at Source (TCS) credit received (if any).

The shift from quarterly GSTR-4 filing to quarterly CMP-08 payment and annual GSTR-4 reporting was implemented from FY 2019-20 onwards to further ease compliance.⁸ While this reduced the frequency of detailed filing, it still requires taxpayers to maintain adequate records throughout the year for accurate annual consolidation.

The due date for filing the annual GSTR-4 was initially the 30th of April following the end of the relevant financial year.⁶ Recognizing the time needed for annual compilation, the 53rd GST Council recommended extending this deadline. Consequently, for the financial year 2024-25 onwards, the due date for filing Form GSTR-4 is the 30th of June following the end of the financial year.²² Numerous extensions and late fee waivers have been granted for previous financial years, often announced via notifications.⁷

All taxpayers who opted for the composition scheme (including the special scheme for service providers) for any part of the financial year are required to file GSTR-4.²² Filing a Nil GSTR-4 is mandatory if the taxpayer was registered under the scheme but had no activity or liability during the year.³⁰

The filing procedure involves logging into the GST portal, navigating to ‘Annual Return’, selecting the financial year, choosing GSTR-4, and preparing it online. Taxpayers need to enter previous year’s aggregate turnover, fill details in various tables (like inward supplies from registered/unregistered persons, import of service, summary of CMP-08 which is auto-populated, tax rate wise outward supplies/RCM inward supplies, TDS/TCS credit received which is auto-populated), preview the return, compute liabilities (tax, interest, late fee), make payment if required (via cash ledger), and file using DSC or EVC.²³

C. Late Fees & Penalties: Consequences of Delayed Filings

Non-compliance with filing deadlines attracts late fees and interest:

Late Fee for Form GST CMP-08: A late fee of ₹200 per day of delay (₹100 under CGST Act + ₹100 under SGST/UTGST Act) is levied for failure to furnish CMP-08 by the due date. This is subject to a maximum penalty of ₹5,000 per statement.¹⁸ Additionally, failure to file CMP-08 for two consecutive quarters can result in the blocking of e-way bill generation capabilities.¹⁸
Late Fee for Form GSTR-4 (Annual): The late fee structure for GSTR-4 has been rationalized. For FY 2021-22 onwards, the late fee is:

₹50 per day of delay (₹25 CGST + ₹25 SGST), subject to a maximum of ₹2,000, for returns with tax liability.
₹20 per day of delay (₹10 CGST + ₹10 SGST), subject to a maximum of ₹500, for Nil returns.²² (Prior to this rationalization, the standard late fee was ₹200 per day, capped at ₹5,000 ³⁰). Several amnesty schemes have also been introduced over time, offering reduced or waived late fees for filing pending returns for past financial years within specified windows.³³ This trend towards rationalizing late fees and providing amnesty aligns with the scheme’s objective of aiding small taxpayers and encouraging compliance without imposing prohibitive penalties.

Interest on Delayed Tax Payment: If the tax payable is not paid by the due date (i.e., 18th of the month after the quarter for CMP-08), interest is chargeable at the rate of 18% per annum on the amount of tax due, calculated from the due date until the actual date of payment.⁶ Specific interest relaxations were provided during the COVID-19 period.¹¹
Penalty for Wrongful Opt-in or Contravention: If a taxpayer opts for the scheme despite being ineligible, or contravenes the provisions of Section 10 or related rules, the proper officer can initiate proceedings. This involves issuing a Show Cause Notice (SCN) in Form GST CMP-05, receiving a reply in Form GST CMP-06, and passing an order in Form GST CMP-07.⁹ If the option is denied, the taxpayer becomes liable to pay tax under the regular scheme (Section 9(1)) retrospectively, along with applicable interest and penalties.⁴ However, such actions must follow the principles of natural justice.⁹

D. Record-Keeping Norms

While the composition scheme aims to reduce compliance burden, including record-keeping, it does not eliminate it entirely. Composition dealers are generally not required to maintain the elaborate accounts and records mandated for regular taxpayers.⁵ However, they must maintain sufficient records to:

Calculate their turnover accurately.
Determine their tax liability under the composition scheme.
Ascertain liability under RCM, if any.
File their quarterly statement (CMP-08) and annual return (GSTR-4).
Support details furnished in case of scrutiny or audit.

Specifically, records pertaining to all inward supplies (purchases), especially those attracting RCM, and outward supplies (sales) are essential. Detailed stock records become particularly crucial during transitions into or out of the scheme for the purpose of ITC reversal (via ITC-03) or claim (via ITC-01).³ Restaurants under the scheme also have specific record-keeping requirements as per general GST rules.³⁶

VI. Entering and Exiting the Composition Scheme

The procedures for opting into and withdrawing from the composition scheme involve specific forms and timelines.

A. Procedure to Opt-In (Intimation & Stock Details)

Intimation:

For Existing Registered Taxpayers (Switching from Regular): An existing taxpayer wishing to switch to the composition scheme must file an intimation electronically in Form GST CMP-02 on the GST portal.⁸ This intimation must be filed prior to the commencement of the financial year for which the scheme is being opted for. The typical deadline is March 31st of the preceding financial year.⁷
For New Registrants: A person applying for new GST registration can indicate their intention to opt for the composition scheme directly within the registration application, Form GST REG-01.³ In this case, the scheme is effective from the effective date of registration.³

Stock Intimation (Form GST CMP-03):

Any taxpayer opting into the composition scheme (whether new or existing) must furnish details of the stock of inputs, inputs contained in semi-finished or finished goods held by them on the day immediately preceding the date from which the option becomes effective. This includes details of inward supplies received from unregistered persons.³
This information is filed electronically in Form GST CMP-03 on the common portal within 90 days from the date the option is exercised or from the effective date of the scheme.³ (Note: Earlier rules specified 60 days, but Rule 3(4) was amended to 90 days ⁵⁷).

Input Tax Credit (ITC) Reversal (Form GST ITC-03):

This is a critical step for taxpayers switching from the regular scheme to the composition scheme. Since ITC is not allowed under composition, any ITC previously availed on the stock held at the time of transition must be reversed and paid back to the government.³
The amount payable is equivalent to the ITC in respect of:

Inputs held in stock.
Inputs contained in semi-finished or finished goods held in stock.
Capital goods or plant & machinery held in stock (calculated on a pro-rata basis for the remaining useful life, typically taken as 5 years).³

This reversal/payment is executed by filing Form GST ITC-03 electronically.³ The amount can be paid by debiting the electronic credit ledger or the electronic cash ledger.⁵⁸
The deadline for filing Form GST ITC-03 is generally 60 days from the commencement of the relevant financial year or the date the option is exercised.³ (Note: Rule 3(3A) mentions 180 days for certain earlier transitional periods ⁵⁷, but 60 days under Rule 44(4) via Sec 18(4) appears standard ³). It is advisable to check the current rule for the precise deadline.
Any balance of ITC remaining in the electronic credit ledger after making the payment via ITC-03 lapses and cannot be used further.²⁷

It is essential to distinguish between Form GST CMP-03 and Form GST ITC-03. CMP-03 is purely an intimation of stock details to the department.³ In contrast, ITC-03 is the functional form used to calculate and execute the financial reversal of ITC associated with that stock and capital goods.²⁴ Filing ITC-03 involves an actual payment or debit from ledgers and is a crucial financial compliance step. Failure to correctly file ITC-03 can result in non-compliance regarding the reversal of previously claimed ITC.

B. Procedure to Opt-Out / Withdraw (Intimation & ITC Claim)

A taxpayer may need or choose to withdraw from the composition scheme.

Triggering Events: Withdrawal can be:

Voluntary: The taxpayer chooses to switch to the regular scheme at any time.³²
Mandatory: The taxpayer ceases to satisfy any of the eligibility conditions, such as:

Aggregate turnover exceeding the prescribed threshold during the financial year.¹
Engaging in inter-state outward supplies.¹
Supplying non-taxable goods/services.¹
Supplying goods/services through an ECO (liable for TCS).¹
Manufacturing notified goods.¹

Intimation of Withdrawal (Form GST CMP-04):

The taxpayer must file an intimation for withdrawal electronically in Form GST CMP-04.⁴
This form must be filed within 7 days from the date of occurrence of the event that makes them ineligible, or from the date they choose to voluntarily withdraw.⁴
The withdrawal application filed via CMP-04 is auto-approved upon successful submission.³² The taxpayer’s status on the GST portal changes from ‘Composition’ to ‘Regular’.⁶³
The effective date of withdrawal can be selected in the form. For voluntary withdrawal, it cannot be a past date. For mandatory withdrawal, it can be a past date (the date the condition was breached) but not prior to the original effective date of opting into composition.³²

Stock Intimation & ITC Claim (Form GST ITC-01):

Upon withdrawal from the composition scheme, the taxpayer transitions to the regular GST scheme and becomes eligible to claim ITC.³
ITC can be claimed on:

Inputs held in stock.
Inputs contained in semi-finished or finished goods held in stock.
Capital goods held in stock (credit reduced by a prescribed percentage for usage period, typically based on 5-year life).³ Stock details pertain to the day immediately preceding the date from which withdrawal is effective.

This claim is made by electronically filing a statement in Form GST ITC-01 on the common portal.³
Form GST ITC-01 must be filed within 30 days from the date of withdrawal or opting out.³
Certain conditions apply for claiming this ITC, such as the goods being intended for making taxable supplies and the availability of valid invoices.¹¹

The procedures for transition highlight a principle of symmetry. Opting in requires reversing ITC on stock (via ITC-03) because the composition scheme disallows ITC. Conversely, opting out allows claiming ITC on stock (via ITC-01) because the taxpayer is moving to the regular scheme where ITC is permissible. These forms act as the mechanisms to adjust the ITC status of the stock held at the point of transition, ensuring alignment with the rules of the scheme being entered and preventing undue benefit or loss. Accurate stock-taking and documentation are vital for both processes.

C. Role of the Proper Officer (Denial/Contravention)

The tax administration retains oversight powers regarding the composition scheme:

Initiation of Proceedings: If a proper officer has reason to believe that a registered person was not eligible to opt for the scheme or has contravened the provisions of the Act or Rules, they can initiate proceedings.⁹
Show Cause Notice (SCN): The officer issues an SCN in Form GST CMP-05, detailing the reasons and asking the taxpayer to show cause within 15 days why the option to pay tax under composition should not be denied.⁹
Taxpayer’s Reply: The registered person must furnish their reply to the SCN in Form GST CMP-06.²⁴
Order: After considering the reply, the proper officer issues an order in Form GST CMP-07 within 30 days of receiving the reply. This order will either accept the reply (allowing continuation under composition) or deny the option to pay tax under the scheme.⁹
Consequences of Denial: If the option is denied via Form GST CMP-07, the taxpayer is treated as a regular taxpayer from the date specified in the order (which could be retrospective to the date of contravention).⁶⁵ They become liable to pay tax under Section 9(1) and may face penalties.⁴ The taxpayer must then file Form GST ITC-01 within 30 days of the denial order to claim eligible ITC on stock held on the day preceding the effective date of denial.⁹ All proceedings must adhere to the principles of natural justice, ensuring the taxpayer has a fair opportunity to be heard.⁹

Table 2: Key Forms in Composition Scheme Procedures

Form Number	Form Name/Purpose	Trigger Event/Context	Filing Deadline (if applicable)
GST REG-01	Application for New GST Registration	New business registration, option to choose composition	At time of registration
GST CMP-02	Intimation to Opt for Composition Levy	Existing taxpayer switching to composition scheme	Before commencement of the Financial Year (e.g., by March 31st)
GST CMP-03	Intimation of Details of Stock on Opting for Composition Levy	Opting into composition scheme (New or Existing)	Within 90 days from effective date / option exercise
GST ITC-03	Declaration for ITC Reversal/Payment on Opting for Composition Scheme	Switching from Regular to Composition scheme	Within 60 days from commencement of FY / option exercise
GST CMP-04	Intimation/Application for Withdrawal from Composition Levy	Voluntary withdrawal or mandatory withdrawal (ineligibility)	Within 7 days of event / voluntary withdrawal date
GST ITC-01	Declaration for ITC Claim upon Exiting Composition Scheme or Denial	Withdrawing from composition / Option denied by officer	Within 30 days from withdrawal date / denial order date
GST CMP-05	Show Cause Notice for Denial of Composition Option	Proper Officer believes taxpayer ineligible/contravened rules	Issued by Officer
GST CMP-06	Reply to Show Cause Notice	Taxpayer response to CMP-05	Within 15 days of receiving CMP-05
GST CMP-07	Order for Acceptance/Rejection of Reply to Show Cause Notice	Proper Officer decision after considering CMP-06	Within 30 days of receiving CMP-06
GST CMP-08	Statement for Payment of Self-Assessed Tax	Quarterly tax payment by composition taxpayer	18th of the month following the quarter
GSTR-4	Annual Return for Composition Taxpayer	Annual compliance filing for composition taxpayer	30th June following the Financial Year (from FY 2024-25 onwards)

(Note: Form GST CMP-01 related to initial transition might be largely historical now but is included for completeness based on older snippets.)

VII. Composition Scheme vs. Regular GST Scheme: A Comparative Analysis

Choosing between the Composition Levy scheme and the Regular GST scheme requires a careful evaluation of the advantages and disadvantages of each, weighed against the specific circumstances of the business.

A. Weighing the Advantages (Composition Scheme)

The primary benefits offered by the Composition Scheme include:

Reduced Compliance Burden: This is the cornerstone advantage. Taxpayers under this scheme face significantly fewer compliance requirements compared to regular taxpayers. This includes filing fewer returns (quarterly payment statement CMP-08 and an annual return GSTR-4, versus potentially monthly GSTR-1 and GSTR-3B plus annual returns GSTR-9/9C for regular taxpayers), simplified tax calculation based on turnover, and less stringent record-keeping norms.⁵
Lower Tax Liability: The scheme offers concessional tax rates (currently 1% for eligible manufacturers/traders, 5% for eligible restaurants, 6% for eligible service providers) applied directly to turnover.³ This can result in a lower tax outgo compared to the standard GST rates (ranging from 5% to 28%) applied on the value of supply under the regular scheme, especially for businesses with low-profit margins.
Improved Liquidity: Since composition dealers pay tax at lower rates and do not engage with the complexities of ITC claims and reconciliation, their working capital may be less constrained.⁸ They avoid potential blockages of funds waiting for ITC eligibility or refunds, contributing to better cash flow management.

B. Understanding the Disadvantages (Composition Scheme)

Despite its simplicity, the Composition Scheme comes with significant limitations:

No Input Tax Credit (ITC): The inability to claim ITC on inward supplies (purchases of goods, services, and capital goods) is a major drawback.⁴ This increases the effective cost of inputs, potentially eroding the benefit of the lower output tax rate, especially for businesses with high input costs or significant capital investments. Tax paid under RCM also becomes an irrecoverable cost.⁶
Restricted Market Territory: The prohibition on making inter-state outward supplies, including exports, severely limits the geographical reach of the business.¹ Businesses cannot expand their customer base beyond their state of registration under this scheme.
Ineligibility for Certain Supplies/Businesses: The scheme is not available for suppliers of non-taxable goods, manufacturers of certain notified goods, or those supplying through ECOs (liable for TCS).¹
Tax Burden Borne by Dealer: Composition taxpayers cannot collect tax from their customers and must pay the composition levy out of their own pocket.⁴ This directly impacts the profit margin unless prices are adjusted accordingly.
Disadvantage for B2B Buyers: Since composition dealers issue a Bill of Supply instead of a Tax Invoice, their registered business customers cannot claim ITC on these purchases.⁸ This makes sourcing from a composition dealer less attractive for B2B transactions compared to sourcing from a regular taxpayer, potentially limiting the composition dealer’s customer base.

C. Factors for Business Decision-Making

The choice between the composition and regular schemes hinges on several factors specific to the business:

Nature of Business & Customer Base: Is the business primarily B2C or B2B? Are customers mostly end consumers/unregistered persons (less sensitive to ITC) or registered businesses (reliant on ITC)?
Geographical Operations & Growth Plans: Does the business operate solely within one state, or does it involve/plan inter-state sales or exports?
Turnover Level: Is the aggregate turnover comfortably within the composition threshold, or is it likely to exceed it soon?
Input Costs & ITC Significance: What is the proportion of input costs in the total cost structure? How significant would the benefit of ITC be under the regular scheme?
Compliance Capacity: Does the business have the resources (time, personnel, expertise) to manage the higher compliance requirements of the regular scheme?
Pricing and Profitability: Can the business absorb the composition tax cost, or will it need to increase prices? How does the net profitability compare under both schemes after considering tax rates and ITC impact?

Table 3: Comparative Analysis: Composition Scheme vs. Regular Scheme

Feature	Composition Scheme	Regular Scheme
Eligibility (Turnover)	≤ ₹1.5 Cr / ₹75L (Goods/Restaurant); ≤ ₹50L (Services) ⁵	No upper limit; Mandatory above ₹40L (Goods) / ₹20L (Services) thresholds ¹²
Tax Rates	Fixed low rates (1%, 5%, 6%) on Turnover in State/UT ¹	Standard GST rates (0%, 5%, 12%, 18%, 28%) on value of supply ¹²
Input Tax Credit (ITC)	Not allowed ⁶	Allowed on eligible inputs, services, capital goods ¹²
Tax Collection from Customer	Not allowed; Tax paid from own pocket ⁶	Allowed; Tax charged on invoice and collected from customer
Invoicing	Bill of Supply ⁸	Tax Invoice ³⁵
Inter-State Outward Supplies	Not allowed (except specified handicrafts) ¹	Allowed ¹²
E-commerce Supplies (via ECO)	Not allowed if ECO collects TCS ¹	Allowed
Return Filing Frequency	Quarterly Payment (CMP-08) + Annual Return (GSTR-4) ⁸	Monthly/Quarterly (GSTR-1, GSTR-3B) + Annual Return (GSTR-9/9C) ¹²
Compliance Complexity	Low / Simplified ⁹	High / Detailed ¹²
Record Keeping	Simplified requirements ⁸	Detailed accounts and records required
Suitability (Typical Profile)	Small, local B2C/unregistered B2B businesses, low ITC needs, stable turnover	Businesses with B2B sales, inter-state operations, export plans, high ITC needs, growth focus

VIII. Recent Developments and Clarifications

The GST framework, including the Composition Levy scheme, is dynamic and subject to amendments and clarifications based on feedback, evolving business practices, and GST Council recommendations.

A. Key Amendments to Section 10 and Related Rules

Significant changes impacting the composition scheme since its inception include:

Increases in Turnover Thresholds: The eligibility limit for goods suppliers and restaurants under Section 10(1)/(2) was progressively increased from the initial ₹50 lakhs to ₹75 lakhs/₹1 crore, and subsequently to the current ₹1.5 crore (₹75 lakhs for specified states).³
Scheme Extension to Service Providers: A major amendment introduced Section 10(2A) and Notification No. 2/2019-Central Tax (Rate), creating a composition scheme option for eligible service providers (and those with mixed supplies not covered earlier) with an aggregate turnover up to ₹50 lakhs in the preceding financial year, subject to a 6% tax rate.¹
Allowance for Marginal Services: The second proviso to Section 10(1) was inserted, permitting taxpayers under the main composition scheme (goods/restaurants) to supply other services up to a value not exceeding 10% of their turnover in the State/UT in the preceding financial year or ₹5 lakhs, whichever is higher.¹
Exclusion of Specific Suppliers: Notification No. 50/2023-Central Tax excluded registered persons supplying specified actionable claims from the composition levy effective October 1, 2023.³⁴
Special Scheme for Brick Manufacturers: A specific composition scheme with a 6% rate (without ITC) was introduced for manufacturers of certain types of bricks, blocks, and tiles.¹¹

B. Significant Notifications and Circulars Impacting the Scheme

Procedural and compliance aspects have also seen changes:

Return Filing Mechanism: The most significant procedural change was the shift effective FY 2019-20 from quarterly filing of Form GSTR-4 to quarterly payment via Form GST CMP-08 and filing of an annual return in Form GSTR-4.⁶
GSTR-4 Due Date Extension: Pursuant to the 53rd GST Council recommendation, Notification No. 12/2024-Central Tax (dated July 10, 2024) amended the rules to extend the due date for filing the annual Form GSTR-4 from April 30th to June 30th following the end of the financial year, effective from FY 2024-25 onwards.²²
Late Fee Rationalization and Waivers: Several notifications have been issued over time to rationalize late fees for delayed filing of GSTR-4 and CMP-08, reducing the burden on taxpayers. Notable examples include Notification 21/2021-CT (rationalizing GSTR-4 late fees from FY 2021-22) ⁴⁵ and various notifications providing waivers or amnesty schemes for past periods, such as the amnesty allowing filing of pending GSTR-4s for FY 2017-18 to 2021-22 with reduced fees by June 30, 2023.³³
Procedural Clarifications: Circulars are periodically issued by the CBIC to clarify ambiguities. While not always specific only to composition dealers, general clarifications on matters like RCM applicability, valuation, or place of supply can have implications.⁶⁷

C. Relevant Outcomes from Recent GST Council Meetings (53rd, 54th, 55th)

Recent GST Council meetings have included recommendations relevant to composition taxpayers:

53rd GST Council Meeting (June 2024): Recommended the extension of the due date for filing the annual return Form GSTR-4 from April 30th to June 30th, effective FY 2024-25 onwards.²²
54th GST Council Meeting (September 2024): While no direct changes to the composition scheme itself were recommended, discussions included RCM on renting of commercial property by unregistered persons to registered persons ⁷⁵, which was later addressed specifically for composition dealers in the 55th meeting. Recommendations were also made regarding waiver applications under Section 128A and special procedures for rectification under Section 148.⁷⁵
55th GST Council Meeting (December 2024): Made a key recommendation directly impacting composition taxpayers: to exclude taxpayers registered under the composition levy scheme from the Reverse Charge Mechanism (RCM) applicability introduced via Notification No. 09/2024-CTR (entry 5AB) concerning the renting of commercial/immovable property by an unregistered person to a registered person.³⁷ It also recommended regularizing the tax position for the period from October 10, 2024 (effective date of the RCM notification) until the issuance of the new notification on an ‘as is where is’ basis.³⁷ Clarifications on the GST treatment of vouchers were also recommended.³⁷

These recent developments indicate an ongoing effort by the GST Council and the CBIC to refine the GST system. The specific exclusion of composition dealers from the RCM liability on rent from unregistered persons demonstrates responsiveness to potential compliance burdens on small taxpayers. However, the evolution of the scheme with specific rules for different categories (goods suppliers, restaurants, service providers, brick manufacturers) and the continuous stream of amendments and clarifications, while often beneficial, also add layers of complexity. Taxpayers opting for the scheme must remain vigilant and updated to ensure continued compliance, potentially diluting the core ‘simplicity’ objective over time.

IX. Practical Application: Scenarios and Problem Questions

Applying the rules of the composition scheme to real-world situations helps clarify its nuances.

A. Eligibility Assessment Scenarios

Scenario 1: M/s ABC Traders has an aggregate turnover of ₹1.2 crore in the preceding financial year, operating entirely within Maharashtra. In the current year, they make a single sale worth ₹50,000 to a customer in Gujarat.
Analysis: M/s ABC Traders becomes ineligible for the composition scheme from the day they make the inter-state outward supply, irrespective of their turnover being below the threshold. They must opt out by filing Form GST CMP-04.¹
Scenario 2: ‘Delicious Bites’, a restaurant in Delhi not serving alcohol, had a turnover of ₹1.3 crore last year. This year, alongside restaurant services, they started providing small catering services worth ₹12 lakhs.
Analysis: The catering service falls under ‘other services’. The limit for marginal services is higher of 10% of preceding year’s turnover (10% of ₹1.3 Cr = ₹13 Lakhs) or ₹5 Lakhs. Since ₹12 Lakhs is within the ₹13 Lakhs limit, ‘Delicious Bites’ remains eligible for the composition scheme under Section 10(1)(b) at the 5% rate.¹
Scenario 3: Ms. Priya, a freelance graphic designer, had a turnover of ₹48 lakhs in the preceding financial year from her services provided within Karnataka.
Analysis: As a service provider with turnover below ₹50 lakhs, Ms. Priya is eligible to opt for the composition scheme for service providers under Section 10(2A) / Notification 2/2019-CT(R), paying tax at 6%.⁵
Scenario 4: Mr. Sharma owns ‘Sharma Garments’ (GSTIN-1) and ‘Sharma Electronics’ (GSTIN-2) under the same PAN. Sharma Garments has a turnover of ₹60 lakhs. Sharma Electronics has a turnover of ₹50 lakhs but manufactures a small batch of electronic toys notified as ineligible for manufacturers under the composition scheme.
Analysis: Since one registration (Sharma Electronics) under Mr. Sharma’s PAN involves manufacturing notified goods, both Sharma Garments and Sharma Electronics are ineligible for the composition scheme due to the PAN-level condition.¹
Scenario 5: ‘General Stores’ has a taxable turnover of ₹90 lakhs and exempt turnover (from selling specified agricultural produce) of ₹70 lakhs in the preceding financial year.
Analysis: Aggregate turnover is calculated including exempt supplies (₹90L + ₹70L = ₹1.6 Cr). Since this exceeds the ₹1.5 crore threshold, ‘General Stores’ is ineligible for the composition scheme.³

X. Concluding Remarks

The Composition Levy scheme, enshrined in Section 10 of the CGST Act, 2017, represents a significant simplification measure within the Indian GST framework. It offers eligible small taxpayers an alternative pathway characterized by lower, fixed tax rates on turnover and substantially reduced compliance requirements, particularly concerning return filing and record-keeping. This allows small businesses to focus resources on growth rather than navigating the complexities of the standard GST regime.

However, the scheme’s inherent simplicity comes at a price. The denial of Input Tax Credit is a major financial consideration, potentially negating the benefit of lower output tax rates for businesses with significant input costs. The strict prohibition on inter-state outward supplies and supplies through major e-commerce platforms imposes critical limitations on market access and scalability. Furthermore, the inability to collect tax from customers means the tax burden falls directly on the supplier, impacting margins.

The decision to opt for the composition scheme requires a nuanced assessment beyond just meeting the turnover threshold. Businesses must carefully evaluate their operational model (B2C vs. B2B), customer base sensitivity to ITC, input cost structure, geographical scope, and future growth ambitions. The PAN-level applicability and the specific exclusions further necessitate careful planning.

Recent amendments and clarifications, such as the extension of the scheme to certain service providers, the allowance for marginal services, the rationalization of late fees, and the targeted RCM relief provided by the GST Council, demonstrate ongoing efforts to refine the scheme and make it more practical. Nonetheless, taxpayers under the scheme must remain updated on these developments.

In essence, the Composition Levy scheme is a valuable instrument for genuinely small, localized businesses for whom simplicity outweighs the benefits of ITC and unrestricted market access. When utilized by the appropriate taxpayer profile, it effectively achieves its objective of easing the GST compliance burden. However, for businesses with significant B2B transactions, inter-state aspirations, or substantial input costs, the regular GST scheme, despite its complexities, often remains the more strategically advantageous option.

Works cited

Section 10 – Explore – CBIC!, https://taxinformation.cbic.gov.in/content-page/explore-act/1000279/1000001
Central Goods and Services Tax Act, 2017 – Tax Information, https://taxinformation.cbic.gov.in/content/html/tax_repository/gst/acts/2017_CGST_act/documents/Central_Goods_and_Services_Tax_Act__2017_28-September-2022.html
Frequently Asked Questions on Composition Levy – CBIC-GST, https://cbic-gst.gov.in/pdf/faq-manual/faq-composition-levy-revised.pdf
GST: Composition Scheme (under section 10 of CGST Act, 2017) – TaxGuru, https://taxguru.in/goods-and-service-tax/gst-composition-scheme-under-section-10-cgst-act-2017.html
Section 10 – Composition levy under GST, https://gstgyaan.com/section-10-composition-levy-under-gst
Composition Scheme under GST – TaxReply, https://taxreply.com/gst/Composition_Scheme_under_GST-681.html
Lower GST Rate Composition Scheme for Service Providers – ClearTax, https://cleartax.in/s/gst-composition-scheme-service-providers
GST Composition Scheme: Rules, Turnover Limit, Rate, Benefits – ClearTax, https://cleartax.in/s/gst-composition-scheme
Composition Levy Scheme – GST Council, https://gstcouncil.gov.in/sites/default/files/e-version-gst-flyers/composition-levy-scheme.pdf
A Comprehensive Guide to GST Composition Scheme – Deskera, https://www.deskera.com/blog/gst-composition-scheme/
Composition Scheme Under GST Explained – ClearTax, https://cleartax.in/s/composition-scheme-under-gst
GST Composition Scheme vs. Regular Scheme: Which is Right for …, https://www.oxyzo.in/blogs/gst-composition-scheme-vs-regular-scheme-which-is-better/145628
GST Registration Limits: Threshold limit for GST Registration for 2025 – Razorpay, https://razorpay.com/learn/gst-registration-limits/
CBIC’s Updated FAQs on GST (English Edition: Dec. 2018), https://www.epch.in/sites/default/files/policies/gst/Circular%20No.%2017-GST%20Dated%20-%2015th%20Dec%202018.pdf
Everything You Need to Know About the GST Composition Scheme – RegisterKaro, https://www.registerkaro.in/post/gst-composition-scheme-guide
How Does the Composition Scheme Under GST Benefit SME Businesses? – Pice, https://piceapp.com/blogs/composition-scheme-under-gst/
Composition Scheme Under India GST – Deskera, https://www.deskera.com/blog/composition-scheme-india-gst/
Form CMP-08: Statement Filing Procedure, Due Date, Penalty and Other Pointers – ClearTax, https://cleartax.in/s/form-cmp-08
Form CMP 08 for GST Composition Scheme – IndiaFilings, https://www.indiafilings.com/learn/form-cmp-08-for-gst-composition-scheme/
Form CMP-08 for Composite Taxpayers– All You Need to Know! – IRIS GST, https://irisgst.com/composition-form-cmp-08-all-you-need-to-know/
Form CMP 08: Statement Filing, Procedure, Due Date, Penalty & Other Essential Information, https://www.deskera.com/blog/form-cmp-08/
GSTR-4 Return Filing: Due Date, Late Fees, Turnover Limit and Applicability – ClearTax, https://cleartax.in/s/gstr4-composition-dealer-gst-return
GSTR-4 Return Filing: Meaning, Applicability, Due Date & Procedure – IndiaFilings, https://www.indiafilings.com/learn/gstr-4-filing/
Composition Scheme Rules under GST – ClearTax, https://cleartax.in/s/composition-scheme-rules-gst
Complete Procedure for Filing CMP-02 on Govt. GST Portal – SAG Infotech blog, https://blog.saginfotech.com/filing-cmp-02-gst-portal
GST Composition Scheme – Eligibility & Application Procedure – IndiaFilings, https://www.indiafilings.com/learn/gst-composition-scheme/
Opting In And Out Of Composition Scheme 2020-21 – IndiaFilings, https://www.indiafilings.com/learn/opting-in-and-out-of-composition-scheme/
Frequently Asked Questions – Goods & Service Tax, CBIC, Government of India, https://cbic-gst.gov.in/hindi/faq.html
Frequently Asked Questions – Goods & Service Tax, CBIC, Government of India, https://cbic-gst.gov.in/faq.html
Easy Guide to GSTR 4 with Step by Step Online Return Filing Procedure – SAG Infotech blog, https://blog.saginfotech.com/gstr-4-online-return-filing
FAQ – To Opt Composition Scheme (Explained under GST), https://tutorial.gst.gov.in/userguide/compositionpoc/optforcomposition.htm
Withdraw from Composition Scheme – Goods and Services Tax – GST portal, https://tutorial.gst.gov.in/userguide/registration/Withdraw_from_Composition_Scheme.htm
How to file GSTR-4 Annual return for Composition Taxpayer under GST – TaxGuru, https://taxguru.in/goods-and-service-tax/file-gstr-4-annual-return-composition-taxpayer-gst.html
CBIC Amends Notification: Specified Actionable Claims Excluded – TaxGuru, https://taxguru.in/goods-and-service-tax/cbic-amends-notification-specified-actionable-claims.html
Tax Invoice and other such instruments in GST, https://www.gstcouncil.gov.in/sites/default/files/e-version-gst-flyers/Tax_Invoice_and_other_new.pdf
GST for Restaurants in India – IndiaFilings, https://www.indiafilings.com/learn/gst-for-restaurants-in-india-a-comprehensive-guide/
55th Meeting of the GST Council 21st December, 2024 *** PRESS RELEASE The 55th GST Council met under the Chairpersonship of,Unio, https://cbic-gst.gov.in/pdf/Press-Release%20-55-GST-Council.pdf
[Analysis] 55th GST Council Meeting | Comprehensive Updates and Recommendations for Simplifying GST Compliance – Taxmann, https://www.taxmann.com/post/blog/analysis-55th-gst-council-meeting
taxinformation.cbic.gov.in, https://taxinformation.cbic.gov.in/content/html/tax_repository/gst/rules/cgst_rules/active/chapter2/rule6_v1.00.html
How to File GST CMP-08 Return Online for Payment Deposit? – SAG Infotech blog, https://blog.saginfotech.com/file-gst-cmp-08-return-online
Steps to Pay GST liability in CMP-08 on GST portal – ClearTax, https://cleartax.in/s/gst-cmp-08-filing-process
FAQs > Filing Form GST CMP-08, https://tutorial.gst.gov.in/userguide/returns/FAQs_CMP02.htm?rhsearch=3B&rhhlterm=3b
GSTR-4 Annual Return for Composition Dealers – Due date 30 April or 30 June? – CA GuruJi, https://taxupdates.cagurujiclasses.com/gstr-4-annual-return-for-composition-dealers-due-date-30-april-or-30-june/
Guide to file GSTR-4 online – ClearTax, https://cleartax.in/s/gstr-4-annual-portal-guide
Late Fees and Interest on GST Return – ClearTax, https://cleartax.in/s/gst-return-late-fees
CBIC extends due date of furnishing FORM GST CMP-08 for the quarter ending 31st March, 2020 till 07.07.2020 & filing FORM GSTR-4 for FY 2020-21 till 15.07.2020. – Manmade and Technical Textiles Export Promotion Council (MATEXIL), https://www.matexil.org/gallery/view/64945
GSTR-4 Annual Return: Applicability, Due Date, and Penalties – Webtel, https://webtel.in/Blog/GSTR-4-Annual-Return-Applicability-Due-Date-and-Penalties/3379
CBIC notifies to file FORM GSTR-4 by the 30th day of June following the end of such financial year from FY 2024-25 onwards – VATupdate, https://www.vatupdate.com/2024/07/12/cbic-notifies-to-file-form-gstr-4-by-the-30th-day-of-june-following-the-end-of-such-financial-year-from-fy-2024-25-onwards/
GSTR 4 Late Fees, Due Date & Eligibility – Pice, https://piceapp.com/blogs/gstr-4-late-fees/
GSTR 4 (Annual Return) – Everything You Want To Know About It! – IRIS GST, https://irisgst.com/gstr-4-and-composition-scheme-under-gst/
GST Amnesty Scheme for MSMEs: Due Date and Application to Avail Benefits, https://blog.tatanexarc.com/msme/gst-amnesty-scheme/
Composition scheme: Late fee waived till June for delayed filing of GSTR-4, https://www.business-standard.com/article/current-affairs/composition-scheme-late-fee-waived-till-june-for-delayed-filing-of-gstr-4-122052601634_1.html
GST Input Tax Credit – 3 – Steps to file ITC – 03 on GST Portal – ClearTax, https://cleartax.in/s/gst-itc-03
GST Form CMP-02: Due Date & Filing Procedure – IndiaFilings, https://www.indiafilings.com/learn/gst-form-cmp-02/
Complete Procedure for Filing CMP-02 on GST Portal – Pice, https://piceapp.com/blogs/how-to-file-cmp-02-in-gst/
Online Procedure To Opt For Composition Levy & File CMP 02 – Goods and Services Tax, https://tutorial.gst.gov.in/userguide/compositionpoc/compositionscheme.htm
Central Goods and Services Tax Rules, 2017, https://taxinformation.cbic.gov.in/content/html/tax_repository/gst/rules/cgst_rules/documents/Central_Goods_and_Services_Tax_Rules__2017_26-December-2022.html
FAQs> Form GST ITC-03, https://tutorial.gst.gov.in/userguide/inputtaxcredit/FAQs_ITC_03.htm
Know in Detail About the Filing of Form GST ITC-03 – Corpbiz, https://corpbiz.io/learning/know-in-detail-about-the-filing-of-form-gst-itc-03/
Filing of Form GST ITC-03: All you need to know – Enterslice, https://enterslice.com/learning/filing-of-form-gst-itc-03/
ITC-03: GST Input Tax Credit – 3 – Masters India, https://www.mastersindia.co/blog/itc-03/
Form ITC 03: Prerequisites and Steps to file ITC 03 on the GST Portal – IRIS GST, https://irisgst.com/form-itc-03-prerequisites-and-steps-to-file-itc-03-on-the-gst-portal/
CMP-04: How to Opt Out of Composition Scheme – GST – ClearTax, https://cleartax.in/s/gst-cmp-04-filing
Manual > Withdrawal from Composition Levy (FORM GST CMP- 04), https://tutorial.gst.gov.in/userguide/registration/Withdrawal_from_Composition_Levy_manual.htm
Withdrawal from Composition Scheme – GST Portal – IndiaFilings, https://www.indiafilings.com/learn/withdrawal-from-composition-scheme/
GST Goods and Services Rates, https://cbic-gst.gov.in/gst-goods-services-rates.html
Circular No. 245/02/2025-GST F. No. CBIC-190354/2/2025-TO(TRU-II)-CBEC Government, https://gst.kar.nic.in/Documents/CIRCULARS/Centralcirrcular24529125.pdf
Circulars/Orders – Goods & Service Tax, CBIC, Government of India, https://cbic-gst.gov.in/hindi/circulars.html
All Latest GST Circulars and Orders by CBIC Department – SAG Infotech blog, https://blog.saginfotech.com/gst-circulars-orders
Tax Information – CBIC, https://taxinformation.cbic.gov.in/
CBIC notifications and circulars effect GST law changes, GST council recommendations, https://www.taxathand.com/article/37097/India/2024/CBIC-notifications-and-circulars-effect-GST-law-changes-GST-council-recommendations
Latest Official Updates Under GST by the Indian Government – SAG Infotech blog, https://blog.saginfotech.com/gst-latest-updates
Recent amendment in GST in October 2023, https://www.gstcouncil.gov.in/sites/default/files/gst-knowledge/Recent-Amendment.pdf
Minutes of the 53”^ Meeting of the GST Council held on 22″** June. 2024 at Bharat Mandapam. New Delhi L, https://gstcouncil.gov.in/sites/default/files/Minutes/53rd_minutes_converted.pdf
54th Meeting of the GST Council 9th September, 2024 *** PRESS RELEASE The 54th GST Council met under the Chairpersonship of Smt., https://cbic-gst.gov.in/pdf/Press-Release-54-GSTC-090924.pdf
54th GST Council Meeting Highlights: Updates, Outcome, Press Release and Latest News, https://cleartax.in/s/54th-gst-council-meet-news
GST Rates in India 2025 – List of Goods and Service Tax Rates, Slab and Revision, https://cleartax.in/s/gst-rates