Question 1

Q1. Can I withdraw from the Composition Levy?

Accepted Answer

Yes, you can withdraw from the Composition Levy at any time of the financial year for the following reasons:

Question 2

Q2. When do I need to withdraw from the Composition levy?

Accepted Answer

The application to withdraw from the Composition levy is required to be filed within 7 days from the date when taxpayer fails to satisfy any condition of Section 10 of CGST/ SGST Act or rules made thereunder.

Question 3

Q3. Which form needs to be filled by me to withdraw from Composition levy?

Accepted Answer

To withdraw from Composition levy, you are required to fill the Form GST CMP-04.

Question 4

Q4. Do I need any approval from Tax authorities to withdraw from the Composition levy?

Accepted Answer

You do not need any approval from State or Centre Tax Authorities to withdraw from the Composition levy. Once the application to withdraw from the Composition levy is filed, application is auto approved immediately and you are opted out of the Composition levy.

Question 5

Q5. Is it mandatory to file Intimation of Stock Details after withdrawal from the Composition levy?

Accepted Answer

Yes, it is mandatory to file a Stock Intimation. After filing the application to withdraw from the Composition levy, you are required to file statement in FORM GST ITC-01 containing details of the stock of inputs and inputs contained in semi-finished or finished goods held in stock by you on the date on which the option is withdrawn or denied, within a period of thirty days from the date from which the option is withdraw.

Question 6

Q6. How is the application for Withdraw from the Composition Levy authenticated?

Accepted Answer

The application for Withdraw from the Composition Levy can be signed using DSC or authenticated using Electronic Verification Code (EVC).

Question 7

Q7. How will I know if my application for Withdraw from the Composition Levy is successfully filed?

Accepted Answer

On successfully signing the application, the success message is displayed. You will receive an acknowledgement with an Application Reference Number (ARN), within 15 minutes of successful submission of your application, on your registered e-mail address and mobile phone number.

Question 8

Q8. I have more than one GSTIN linked to the same PAN and all my GSTINs are currently under the composition scheme. What will happen if I opt out of Composition Levy in one of these GSTINs?

Accepted Answer

It is important to note that if you withdraw from Composition Levy for any of your GSTINs, you will automatically be removed from Composition Levy for all the GSTINs linked to the same PAN.

Question 9

Q9. Can I withdraw from Composition Levy retrospectively (from a past date)?

Accepted Answer

Yes, based on your reason for withdrawal, you can withdraw from the Composition Levy on a past (or future date).

Withdrawal from Composition Levy

Intimation of Stock Details by Migrated Taxpayers Opting for Composition Levy

Opt for Composition Levy

Composition Levy Scheme in GST

Compulsory Withdrawal from the Composition Levy