GST Advisory on Opting-in for Composition Scheme for 2020-21

GST Advisory on Opting-in for Composition Scheme for 2020-21

Advisory on Opting-in for Composition Scheme for 2020-21 –Extension of Dates in view of COVID-19 pandemic


GST Department, vide update no. 373 dated 07.04.2020 has issued Advisory on Opting-in for Composition Scheme for 2020-21 - Extension of Dates in view of COVID-19 pandemic.

I. Government has extended dates for opting for composition scheme by normal taxpayers, for the financial year 2020-21. These are notified in Notifications 30/2020 Central Tax, dated 03.04.2020. Circular No. 136/06/2020-GST dated 3rd April, 2020 has also been issued.

II. Existing Normal taxpayers who want to opt for Composition Scheme in Financial Year 2020-21 may note following changes:

a) Revised date to file Form GST CMP 02:  Normal and registered taxpayers who want to opt in for Composition in FY 2020-21 can apply in Form GST CMP-02 by 30th June 2020.

b) No GSTR 1 or 3B must be filed in 2020-21 financial year for associated PAN: The taxpayers SHOULD NOT file any GSTR-1/GSTR-3B, for any tax period of FY 2020-21, from any of the GSTIN on the associated PAN, or else they will not be able to opt for composition scheme for FY 2020-21.

c) No need for re-opting for the composition scheme: The taxpayers who are already in composition scheme, in previous financial year are not required to opt in for composition again for FY 2020-2021.

d) Revised date to file Form GST ITC 03: Form GST ITC-03 to reverse ITC for the stock in hand at the time of transition can be filed till 31st July, 2020.

e) Modification in earlier advisory date 18.02.2020: The advisory issued on 18.02.2020 and available on GST Portal (click here for the link https://www.gst.gov.in/newsandupdates/read/356 ) stands modified to above extent.


DISCLAIMER: THE ARTICLE IS BASED ON THE RELEVANT PROVISIONS AND AS PER THE INFORMATION EXISTING AT THE TIME OF THE PREPARATION. IN NO EVENT I SHALL BE LIABLE FOR ANY DIRECT AND INDIRECT RESULT FROM THIS ARTICLE. THIS IS ONLY A KNOWLEDGE SHARING INITIATIVE.
THE AUTHOR – CS DEEPAK SETH (ASSOCIATE PARTNER HELPINGHANDS PROFESSIONALS LLP) AND CAN BE REACHED AT CONTACTHHPRO@GMAIL.COM OR 9910248911.


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