CMP-02 Opt-in Extended & ITC Rule 36(4) Cumulative Relief – FY 2020-21

Notification No.: 30/2020 – Central Tax
Date of Notification: 3rd April 2020

Relevant Sections and Rules:

• Central GST Act, 2017:
  • Section 10 – Composition levy
  • Section 164 – Power to make rules
• CGST Rules, 2017 (Amended):
  • Rule 3(3) – Intimation for opting Composition Scheme
  • Rule 36(4) – Restriction on ITC availability based on GSTR-2A

Summary of Notification

1. Extension for Opting Composition Scheme for FY 2020–21:
   Registered persons wishing to opt for the Composition Levy Scheme under Section 10 for the financial year 2020–21 must:

• File FORM GST CMP-02 on the common portal, either directly or through a Facilitation Centre, by 30th June 2020, and
• Furnish FORM GST ITC-03 (declaration of ITC reversal) by 31st July 2020.

This provides extended compliance time in light of the COVID-19 pandemic.

2. Cumulative ITC Adjustment Under Rule 36(4):
   The restriction on availment of ITC based on invoices uploaded in GSTR-2A shall be applied cumulatively for the months February to August 2020.

• The adjustment must be reflected in GSTR-3B of September 2020, thus easing the monthly reconciliation burden and aligning with return filings amid disruptions.

Source: Notification No.: 30/2020 – Central Tax