GST CMP-02 Filing: Everything You Need to Know Before the Due Date – March 31, 2025

For small businesses and taxpayers looking for a simplified GST compliance process, the Composition Scheme offers a great opportunity. To avail this scheme for FY 2025-26, eligible taxpayers must file Form GST CMP-02 by March 31, 2025.

Let’s dive into the details!

🔹 What is GST CMP-02?

GST CMP-02 is a declaration form that must be filed by normal taxpayers who wish to opt for the Composition Scheme. By opting for this scheme, businesses can pay a fixed percentage of turnover as tax and enjoy easier compliance requirements compared to regular GST filings.

🔹 Who Needs to File GST CMP-02?

Any taxpayer registered under GST as a normal taxpayer can opt for the Composition Scheme by filing CMP-02 before the start of the new financial year. This is particularly beneficial for:
✅ Small businesses with annual turnover up to ₹1.5 crore (₹75 lakh for specific states).
✅ Manufacturers, traders, and restaurants (excluding alcohol-serving ones).
✅ Service providers with turnover up to ₹50 lakh under the Composition Scheme for Services.

🔸 Who Cannot Opt for the Composition Scheme?
❌ Businesses engaged in inter-state supplies.
❌ Suppliers of non-taxable goods or services.
❌ E-commerce operators collecting TCS.

🔹 Why is CMP-02 Important?

📌 Filing CMP-02 before March 31, 2025 ensures that a taxpayer can operate under the Composition Scheme for FY 2025-26.
📌 Once opted, the taxpayer will be liable to pay a lower tax rate and file quarterly returns (CMP-08) instead of monthly GST returns.

🔹 Benefits of Opting for the Composition Scheme

✔ Lower Compliance Burden – No need to maintain extensive records or issue tax invoices.
✔ Reduced Tax Liability – Pay GST at a nominal rate (1% for traders/manufacturers, 5% for restaurants, and 6% for service providers).
✔ Quarterly GST Payments – Instead of filing monthly GST returns, composition dealers file CMP-08 on a quarterly basis and GSTR-4 annually.
✔ Better Cash Flow Management – No need to charge GST from customers, making pricing more competitive.

🔹 How to File GST CMP-02?

Filing Form CMP-02 is a simple online process:
1️⃣ Log in to the GST portal (www.gst.gov.in).
2️⃣ Navigate to Services → Registration → Application to opt for Composition Levy.
3️⃣ Select Financial Year 2025-26 and submit the declaration.
4️⃣ Verify with DSC or EVC to complete the process.

🔹 Key Deadlines & Next Steps

🛑 March 31, 2025 – Last date to submit CMP-02 for opting into the Composition Scheme.
📅 April 1, 2025 – Start operating under the scheme for FY 2025-26.
📑 July 18, 2025 – First quarterly CMP-08 return due for the April-June period.

📞 Need Help Filing CMP-02? Contact Us!

📱 Call/WhatsApp: +91 9600076134 / 6374812546
📧 Email: auditsiva2@gmail.com
🌐 Visit: www.taxlaservices.com

Act now and simplify your GST compliance! 🚀

#GST #CMP02 #CompositionScheme #TaxFiling #TaxCompliance #SmallBusiness #TaxlaServices



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