About this banking scheme
The scheme aims to enable eligible GST taxpayers to opt for the Composition Scheme for simplified tax compliance and payment under the Goods and Services Tax (GST) regime.
The "To Opt Composition Scheme" is a centrally sponsored scheme implemented by the Finance Department, Government of NCT of Delhi, which aims to enable eligible GST taxpayers to opt for the Composition Scheme through a simplified tax payment and compliance mechanism under the Goods and Services Tax (GST) system. Eligible new and existing taxpayers can apply online through the GST Portal by submitting the prescribed application form. Existing taxpayers must submit the application before the commencement of the relevant financial year. Applicants are also required to file Stock Intimation within 30 days from the date of opting for the Composition Levy. Composition taxpayers are required to file the prescribed quarterly statement and annual return under GST.
Benefits at a glance
| Scheme name | To Opt Composition Scheme (TOCS) |
|---|---|
| Launched by | Finance Department |
| Benefit type | Cash (money paid to your bank account) |
| Category | Banking |
| Level / State | State · Delhi |
| Official portal | gst.gov.in (link at the end of this page) |
Key facts
| Scheme for | Individual |
|---|---|
| Application mode | Online |
| Last date | Ongoing (no last date notified) |
| DBT (direct bank transfer) | No |
| Age | 18 to 80 years |
Who can apply (quick check)
- 👤All genders
- 🎂Age 18 to 80 years
- 📝Online
Quick check from official data. Full conditions are in the Eligibility section.
What you receive
- Simplified GST Compliance: Eligible taxpayers can opt to pay tax under the Composition Scheme instead of the regular GST scheme, enabling a simpler tax payment and compliance process.
Who qualifies
- The applicant must be a regular GST taxpayer.
- The applicant must have an aggregate annual domestic PAN-based turnover within the limit specified from time to time under GST.
- New Taxpayers: Any person who becomes liable to register under GST Act, after the appointed day, needs to file his option to pay composition amount in the Application for New Registration in Form GST REG-01.
- Existing Taxpayers: Any taxpayer who is registered as normal tax payer under GST needs to file an application to opt for Composition Levy in Form GST-CMP-02 at GST Portal prior to the commencement of financial year for which the option to pay tax under the aforesaid section is exercised.
Who is not eligible
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Registration walkthrough
Online
Step 1: To opt for composition levy, access the URL https://www.gst.gov.in/. The GST Home page will be displayed.
Step 2: In case of New Registration, click on "Register" and proceed.
Step 3: Log into the GST Portal by entering your login Credentials.
Step 4: Once you have logged in, select ‘Application to Opt for Composition Levy’ from the Registration Menu.
Step 5: You will be directed to a new screen – Application to Opt for Composition Levy. Your GSTIN, Legal Name of Business, Trade Name (if any), and Address of Principal Place of Business will be displayed.
Step 6: Below that, your Nature of business and Jurisdiction will be listed.
Step 7: Below these details, there is a Composition Declaration that you must check to pledge to abide by the conditions and restrictions for Taxpayers who are under the Composition Levy.
Step 8: Before submission, you must also check the box for Verification (below the Composition Declaration) that states that all the information given is true and that nothing has been concealed from the authority.
Step 9: Finally, before submission, select the Authorized Signatory from the drop-down menu and enter the Place.
Step 10: Once you select the Authorized Signatory and enter the Place, the options to submit the form will get activated. Select the desired mode – DSC, E-sign, or EVC – and click the corresponding submission option. For the purpose of this manual, we will submit the application using DSC.
Step 11: You will get a prompt to confirm your action, click on PROCEED to move forward.
Step 12: The system will retrieve the installed digital signatures available on your system using the emSigner and you will get a pop-up to select the desired DSC. Select the desired signature.
Step 13: Once you select the desired digital signature (it will get highlighted in blue), click Sign. If your digital signature is authenticated, you will get a SUCCESS message.
Step 14: The system will perform some validations and if they are successful your ARN for the work item will be generated and sent to you via e-mail and SMS within the next 15 minutes.
Frequently asked questions
What is the objective of this scheme?
The Composition Scheme is a simplified tax payment scheme available to eligible GST taxpayers.
Who can opt for the Composition Scheme?
A regular GST taxpayer meeting the prescribed turnover limit and eligibility conditions can opt for the Composition Scheme.
Can a new taxpayer opt for the Composition Scheme?
Yes. A new taxpayer can opt for the Composition Scheme while applying for GST registration through Form GST REG-01.
How can an existing taxpayer opt for the Composition Scheme?
An existing regular taxpayer must file Form GST CMP-02 on the GST Portal before the commencement of the relevant financial year.
Is approval from the tax authorities required after submitting the application?
No. The application is not subject to approval by the tax authorities.
Is filing Stock Intimation mandatory?
Yes. Every applicant opting for the Composition Scheme must file Stock Intimation within 30 days from the date of opting.
What happens if Stock Intimation is not filed?
The taxpayer may be removed from the Composition Scheme after appropriate proceedings.
Can a taxpayer save the application before submitting it?
Yes. The application can be saved for up to 15 days from the date of initiation.
Why can an application for the Composition Scheme be rejected?
An application may be rejected if the prescribed conditions under GST are not satisfied, including the specified condition relating to filing GSTR-1 or GSTR-3B for the period mentioned in the scheme guidelines.
Is a fresh application required for taxpayers already under the Composition Scheme?
No. A fresh application is not required if the taxpayer continues to satisfy the applicable conditions and restrictions.
Which quarterly statement must a Composition taxpayer file?
A Composition taxpayer must file Form GST CMP-08 every quarter or part thereof, as applicable.
Which annual return must a Composition taxpayer file?
A Composition taxpayer must file Form GSTR-4 for every financial year or part thereof, as applicable.
Who cannot opt for the Composition Scheme?
Persons such as Non-Resident Foreign Taxpayers, Input Service Distributors, casual taxable persons, manufacturers of notified goods, and other ineligible persons specified under GST cannot opt for the scheme.
Where can an applicant submit the application for the Composition Scheme?
An applicant can submit the application online through the GST Portal.
Submit your application yourself on the official portal; it costs nothing. Treat anyone demanding money to "get you approved" as a scam.
- Guidelines tutorial.gst.gov.in
tsmpb.in is not affiliated with any government department. Apply only on the official portal and never pay anyone for an application.
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