GST Portal : Opt For Composition Scheme

It is a voluntary and an optional scheme with simpler returns and lesser compliance under GST. A business is compelled to register under GST if their aggregate turnover in a financial year exceeds the threshold limit. The threshold limit for the Composition Scheme of the goods and restaurant services is at 1.5 Cr. (Rs.75 lacs for special category states) and Rs.50 lacs for other services during a financial year. Businesses can opt for Composition Scheme on the GST Portal.

GST Portal – Steps to Opt In for Composition Scheme

  1. Login to GST Portal

    Login to your account on GST Portal using valid username and password

  2. Navigate to Application to Opt for Composition Scheme

    Go to Services > Registration > Application to Opt for Composition Scheme

  3. Application Page

    The application page will display various details such as GSTIN and the legal name of the business, jurisdiction, address etc of the business

  4. Composition Declaration & Verification

    Click on the check-box. This indicates that you abide by the conditions and restrictions of Taxpayers who are under this scheme.
    Click on the “Verification” check-box. This states that the information given by you is true. Furthermore, you haven’t concealed any information from the authority.

  5. Verification tab

    Before the submission of the application, you have to provide details such as “Name of Authorized Signatory” and “Place”. Submit the application using EVC or DSC (Digital Signature Certificate).

  6. Warning Message

    As a result of the submission of the application, we receive a “Warning” message. Click on “Proceed” to move forward

  7. Sign with DSC

    If you need to submit the application using DSC, move to the emSigner Window. Select the desired signature required for the application and click on “Sign”

  8. Success Message

    After the completion of the DSC authentication, you will receive a Success message. An ARN will be generated and sent to your registered e-mail and SMS in next 15 minutes.

FAQs

What is the tax rate for taxpayer under Composition Scheme?

a. Trader of Goods = 1% ( CGST 0.5% & SGST 0.5%)
b. Manufacturer of Goods = 2% (CGST 1% & SGST 1%)
c. Restaurant Services = 5% (CGST 2.5% & SGST 2.5%)
d. Other Services = 6% (CGST 3% & SGST 3%)

Can the service provider go for the Composition Scheme?

Yes, the Composition Scheme for services (other than restaurant services) has been introduced with an initial limit of Rs 50 Lakh, taxable at 6%, beginning from April 1, 2019. In the case of Restaurant Services, the threshold limit is Rs. 1.5 Cr (Rs. 75 lacs for special category states) taxable at 5%.

What are the different types of returns a Composition Dealer has to file?

A Composition Dealer has to file one return i.e. GSTR-4 on an annual basis, GST CMP-08 on a quarterly basis.

Got Questions? Ask Away!

  1. Hey @Shweta_Saini

    You can opt out of Composition Scheme from your account on GST Portal. Once the taxpayer type is updated to Regular in your profile, you can start filing GST Returns under the regular scheme. If you are facing any issues while making the withdrawal application, you can create a grievance on the GST Portal.

    Do let us know if you have any further queries.

  2. I want to be able to claim input tax credit for GST paid. Should I opt for the GST composition scheme or regular scheme?

  3. Hey @Joe_Fernandes

    If you wish you claim Input tax credit, you should opt for GST Regular Scheme.

    Read more about the difference here.