Application to opt for composition scheme in GST FAQs

by varun · Published October 20, 2020 · Updated December 24, 2021

Continuing with our series on FAQs related to GST registration . Let us discuss some important FAQs on composition scheme in GST. It is very important to know important details of application to opt for composition scheme in GST . Let us try to answer maximum question related to same topic as we can in this article on GST registration-

Q – Who can opt for composition scheme in GST application?

A – A business can opt for the composition scheme if you are a regular taxpayer with an aggregate annual
domestic PAN-based turnover not exceeding INR 50,00,000 (Fifty lakhs).

Q – Who cannot opt for composition scheme in GST application?

A – Following categories of businesses cannot opt for composition scheme in GST application-

engaged in the supply of services
any supply of goods which are not liable to be taxed under this Act
inter-state outward supplies of goods
supplies through electronic commerce operators who are required to collect tax under
section 56.
a manufacturer of notified goods
a casual dealer
a Non-Resident Foreign Taxpayer
a person registered as Input Service Distributor (ISD)
a person registered as TDS Deductor/Tax Collector.

Q – How can i opt for composition scheme in GST application?

A – You can opt for the same by following these steps-

Login to your GST portal.
Go to Services > Registration > Application to Opt for Composition Scheme
Fill the form as per the form specification rules and submit

Q – When can I opt for the Composition Scheme?

A – In order to avail this scheme, you need to file an online application to Opt for Composition Scheme
with the tax authorities. Taxpayers who can opt for this scheme can be categorized as below:

Migrated Taxpayers: Any taxpayer who are migrated from earlier laws and who have been
granted provisional registration would file an application for composition prior to appointed
day, but not later than 30 days after the appointed day.
New Taxpayers: Any person who becomes liable to register under GST Act, after the
appointed day, shall file his option to pay composition amount in the Application for New
Registration.
Existing Taxpayers: Any taxpayer who is registered as normal tax payer under GST regime
shall file an application to opt for Composition Scheme prior to the commencement of
financial year for which the option to pay tax under the aforesaid section is exercised.

Q – Can I save the Application to Opt for Composition Scheme on GST portal?

A – Yes, the application can be saved for up to 15 days from the date of initiation after which it will be
purged by the system. Saved applications can be accessed using the My Saved Applications functionality available in
the Taxpayers’ Interface.

In this article, we have discussed FAQs related to composition scheme in GST. We would be adding more articles in future too. Meanwhile to read articles related to Non resident taxable person in GST, you can click here or visit us here to read exhaustive articles related to GST registration.