Circular No.: 97/16/2019-GST
Date of Circular: 5th April 2019
Corrigendum Dates: 1st July 2019 & 29th July 2019
Relevant Sections and Rules:
- CGST Act, 2017:
- Section 10: Composition levy
- Section 168(1): Power to issue instructions
- CGST Rules, 2017:
- Rule 3(3) & 3(3A): Intimation for opting composition scheme
- Rule 6: Withdrawal from composition
- FORM GST CMP-02 and ITC-03
- Notifications:
- Notification No. 2/2019-Central Tax (Rate) dated 07.03.2019
Summary of Circular:
This circular provides the procedure for opting into the new composition scheme introduced by Notification No. 2/2019-CT(R), applicable to suppliers of services or mixed suppliers, offering GST at a concessional rate of 6% (3% CGST + 3% SGST).
- Eligibility & Opt-In Process:
- Eligible taxpayers can opt into the scheme by:
- Filing FORM GST CMP-02 on the GST portal
- Selecting the category “Any other supplier eligible for composition levy” under Sl. No. 5(iii)
- Filing FORM GST ITC-03 to reverse ITC as per Rule 3(3)
- Revised Due Date (via Corrigenda):
- Originally: 30th April 2019
- First Corrigendum (1st July 2019): Extended to 31st July 2019
- Final Corrigendum (29th July 2019): Further extended to 30th September 2019
- Effective Date of Composition Scheme:
- Once CMP-02 is filed, composition benefits apply retrospectively from 1st April 2019 for FY 2019–20.
- Return Filing Implications:
- For supplies made before filing CMP-02, returns must be filed as regular taxpayer.
- Post opt-in, the taxpayer must file returns applicable to composition taxpayers (GSTR-4).
