Learn how to withdraw from the GST Composition Scheme by filing Form CMP-04. This guide covers voluntary exit rules and step-by-step online filing.
Businesses operating under the Goods and Services Tax (GST) composition scheme are required to submit Form GST CMP-04 when they choose to exit the scheme. This form must be filed under three specific circumstances: * When a dealer voluntarily decides to withdraw from the composition scheme. * If the dealer’s annual turnover surpasses the prescribed limits. * If the dealer no longer meets any of the essential conditions for participating in the scheme. According to a notification issued on January 1, 2018, the term ‘turnover’ for traders refers to the total value of taxable goods supplied. Taxpayers must submit GST CMP-04 electronically via the GST Portal within seven days from either the date they intend to opt out of the composition scheme or the date they become ineligible. For instance, if a composition dealer’s turnover exceeds ₹1.5 crore on December 15, 2017, they must file CMP-04 by December 22, 2017. The withdrawal process is completed online through the official GST Portal.
Step-by-Step Guide for Filing GST CMP-04 Online
To file GST CMP-04 on the official GST Portal, follow these instructions:
- Access the GST Portal by logging in with your credentials.
- Navigate to ‘Services,’ then ‘Registration,’ and finally select ‘Application for Withdrawal from Composition Levy.’
- From the provided drop-down menu, choose the specific reason for your withdrawal.
- Tick the ‘Verification’ checkbox, provide the ‘Name of Authorized Signatory,’ and fill in the ‘Place’ field. After clicking ‘SAVE,’ submit your CMP-04 application using either a Digital Signature Certificate (DSC) or Electronic Verification Code (EVC).
Once the GST CMP-04 is successfully filed, your ‘Taxpayer Type’ in ‘My Profile’ will be updated to ‘Regular.’
