Intimation for withdrawal from composition tax

GST CMP-04 is to be filed for withdrawal from composition levy.

No approval from any state or central tax authorities is needed to withdraw from composition levy. As soon as GST CMP-04 is filed, it is auto approved immediately.

The application in Form GST CMP-04 can be signed using DSC or authenticating using EVC.

If a person having multiple GST numbers under a single PAN decides to opt out of composition levy in relation to any 1 GST numbers, he will be automatically removed from composition levy for all the GSTIN linked to his PAN.

1. Withdrawal by taxpayer:-
   When the taxpayer himself opted out from composition scheme, the effective date of withdrawal shall be:-
   “The date indicated by the taxpayer in Form GST CMP-04”.
   It has been clarified that the date indicated in the form should not be prior to the commencement of the financial year in which such intimation for withdrawal is filed.
2. Withdrawal by tax authorities:-
   Where the withdrawal from the composition scheme has been initiated by the tax authorities, the effective date of withdrawal shall be:
   “The date as determined by the tax authorities”. The tax authorities can even determine any retrospective date.

Yes, it is compulsory to file Form GST ITC-01 i.e. a statement containing details of the stock of inputs and inputs contained in semi-finished or finished goods held in stock on the date on which the option is withdrawal or denied. Such form is to be filed within 30 days from the date of withdrawal.