GST Composition scheme Availment

Video tutorial by CA Satbir Singh on last date to apply GST Composition scheme

1. Can we switch to GST composition scheme from Regular ?

2. Is there any last date to apply for composition scheme during the year? 

3. Can we take fresh GST registration under composition scheme and cancel regular registration ?

Comment

1. Yes you can switch to GST composition scheme from Regular scheme if conditions are satisfied for Composition Scheme.
2. You can opt Composition Scheme prior to the commencement of the financial year only. 
3. you can not take fresh GST registration under composition scheme and cancel regular registration .

Relevant portion of Rule  3 Central Goods and Services Tax Rules, 2017 :- Intimation for composition levy

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(3) Any registered person who opts to pay tax under section 10 [Composition Levy]  shall electronically file an intimation in FORM GST CMP-02, duly signed or verified through electronic verification code, on the common portal, either directly or through a Facilitation Centre notified by the Commissioner, prior to the commencement of the financial year for which the option to pay tax under the aforesaid section is exercised and shall furnish the statement in FORM GST ITC-03 in accordance with the provisions of sub-rule (4) of rule 44 within a period of sixty days from the commencement of the relevant financial year.

Rule  4 of Central Goods and Services Tax Rules, 2017 : Effective date for composition levy :-

4. (1) The option to pay tax under section 10 shall be effective from the beginning of the financial year, where the intimation is filed under sub-rule (3) of rule 3 and the appointed day where the intimation is filed under sub-rule (1) of the said rule.

(2) The intimation under sub-rule (2) of rule 3, shall be considered only after the grant of registration to the applicant and his option to pay tax under section 10 shall be effective from the date fixed under sub-rule (2) or (3) of rule 10.

Relevant Portion of Section 29 of CGST Act : Cancellation of registration .

29. (1) The proper officer may, either on his own motion or on an application filed by the registered person or by his legal heirs, in case of death of such person, cancel the registration, in such manner and within such period as may be prescribed, having regard to the circumstances where,—

Can I register as a normal taxable person now and avail of the composition scheme later?

You can opt for composition scheme from the beginning of the next financial year on submitting the option to avail composition scheme before beginning of the financial year. It may please be noted that composition scheme cannot be availed from the middle of a financial year.

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