Form CMP-02

Table of Contents

Form GST CMP-02 is an online application form required for each taxpayer who is enrolled as a regular taxpayer under GST. This form must be submitted to the GST site before the start of the fiscal year for which the option to pay composition tax is exercised.

A new taxpayer who becomes eligible to register under the GST Act may also make an application with the tax authorities to opt for the Composition Levy.

However, such a taxpayer must make an online application in Form GST REG-01, Application for New Registration, to select for the composition levy.

A taxpayer who is registered under an existing legislation and wishes to migrate to the composition scheme under the GST law must notify the tax authorities using form GST CMP-01.

This implies that a taxpayer can choose to pay the composition levy in one of two ways, depending on his tax status:

  1. CMP-01 
  2. CMP-02
  3. REG-01


Furthermore, taxpayers who provide services may apply for the composition scheme beginning with the fiscal year 2019 โ€“ 2020. This is due to the fact that, as of the 32nd GST Council Meeting, the composition scheme is now open to service providers as well.

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Who Files GST CMP-02?

Form GST CMP-02 is an online application form required for each taxpayer who is enrolled as a regular taxpayer under GST. This form must be submitted to the GST site before the start of the fiscal year for which the option to pay composition tax is exercised.

A new taxpayer who becomes eligible to register under the GST Act may also make an application with the tax authorities to opt for the Composition Levy.

However, such a taxpayer must make an online application in Form GST REG-01, Application for New Registration, to select for the composition levy.

A taxpayer who is registered under an existing legislation and wishes to migrate to the composition scheme under the GST law must notify the tax authorities using form GST CMP-01.

This implies that a taxpayer can choose to pay the composition levy in one of two ways, depending on his tax status:

CMP-01
CMP-02
REG-01

Furthermore, taxpayers who provide services may apply for the composition scheme beginning with the fiscal year 2019 โ€“ 2020. This is due to the fact that, as of the 32nd GST Council Meeting, the composition scheme is now open to service providers as well.

It is required for any taxpayer who wishes to use the composition system under GST, either at the start or in the midst of a fiscal year, to notify the government.

The taxpayer must make such an indication on form GST CMP-02. Furthermore, if the taxpayer submits GST CMP-02 in the midst of the fiscal year, the rules or conditions governing the composition levy will apply from the month after the month in which the form GST CMP-02 is filed.

Mr. Kapoor, for example, submits GST CMP-02 in January 2018. As a result, the composition scheme requirements would become effective in February 2018.

Furthermore, in addition to GST CMP-02, the taxpayer is required to submit a declaration regarding notice of ITC reversal or payment of tax on inputs held in stock, inputs contained in semi-finished and completed goods in stock, and capital goods under section 18, subsection 4.

CMP-02 Due Date

Due DateForms
30th April, 2019CMP-02, CMP-03
31st July, 2019CMP-02, CMP-03

How to File CMP-02?

  • Access GST Portal

Go to the GST portal. Enter your login credentials to login to the GST portal.4

  • Choose Application to Opt for Composition Levy

After logging in to the GST site with your login credentials, pick ‘services tab’ and then ‘registration menu’ from the dropdown list. Choose ‘application to opt for composition scheme from the list of alternatives under ‘registration menu.’

  • Check Composition Declaration on Application

You will be led to the ‘application to opt for composition scheme’ page after selecting the ‘application to opt for composition scheme’ option. This page will show your GSTIN, legal name of business, trading name (if applicable), and primary place of business address.

The kind of your business, as well as its jurisdiction, will be included underneath all of these facts. Following these specifics, a composition declaration checkbox is added.

You must tick this box because it is a declaration that you will adhere by the limitations and limits provided in the act and its rules for taxpayers who choose the composition scheme.

  • Verification

Before completing the form, you must additionally check the verification box, which is located just below the composition statement.

The verification box serves as a declaration that the information provided by you as a taxpayer is true and that nothing has been concealed from the tax authorities.

  • Select Authorized Signatory

You must pick the approved signatory from the dropdown menu in the ‘name of authorized signatory’ area before completing the form. You must also input the location in the ‘location field.’
Select the option to Submit the form
The choices to submit the form become active when you pick the authorised signatory and input the location. You can submit the form via DSC, E-Sign, or EVC.

Choose the appropriate choice and press the relevant submit button. For the sake of this essay, we have picked the DSC option.

  • Display of Warning

When you click the associated submit button, a warning appears to validate your activity. You must proceed by clicking the ‘proceed’ button.

  • Retrieval of DSC

When you click the ‘continue’ button, the GST site will retrieve your digital signatures from the system using the emSigner. You will then be prompted to pick the required DSC. You must pick the same and then click ‘sign’ button.

  • Display of Success Message

Only if your digital signature is authorized will you receive a success message after selecting it and clicking the sign button.

  • Generation of ARN

The GST site will complete some validations once you receive a success message. If such validations are successful, the portal will generate an ARN (Application Reference Number).

Within the next 15 minutes, and ARN will be delivered to your registered email address and cellphone number.

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