Question11:
One of the assessee migrated from VAT as regular dealer to GST as Composition Dealer.
Till 30 September 2017, he remained under Composition Scheme but from 1st Oct 2017, he converted as Regular Dealer in GST. GSTR-4 was filed for Qtr July to Sep-17 whereas from Oct 17, GSTR 3B is being filed as a regular dealer. Now, the query follows:
1- Is he required to file CMP-03 return, since he was under composition scheme from July to Sep-17.
2- If yes, any reasoning..? But, even if validly required, GST portal is not giving option to file CMP-03 now, since he is registered as a regular dealer now.
3- GST CMP-03 is only required to be filed who have registered under Composition Scheme afresh as a new dealer in GST.Please confirm?
4- What are the consequences of not filing GST CMP-03
5- Lastly, since the conversion took place from composition to regular from 1st Oct 17, is it mandatory or optional to file ITC-01, if ITC not significant...any penal provisions, if mandatory..?
Answer
Point wise replies as follows :-
1&2. Person migrating from old laws and opting to pay tax under composition scheme on filling intimation in FORM GST CMP-01 shall furnish details of stock, including the inward supply of goods received from unregistered persons under the earlier laws electronically, in FORM GST CMP-03, on the common portal. (As per Rule 3(4) of CGST).
Order No. 11/2017-GST dt. 21.12.2017 extends the date of filing of FORM GST CMP-03 till 31st January, 2018.
So he is required to furnished details of stock in FORM GST CMP-03 and pay tax/reverse ITC on it till 31.01.2018.
You were required to file CMP-03 before you switched over to regular dealer. Since, you have already switched over, therefore, the Common Portal is not showing COMP-03 now. For resolving this issue you may refer your matter to GST help desk as problems relating to Portal can be resolved by them only.
3. No, the Person migrating from old laws also required to file GST CMP-03 . (combined reading of Rule 3(1) with Rule 3(4).
4. General penalty which may go up to Rs. 25,000/- can be imposed under Section 125 of CGST Act, 2017.
5. If you carry forward the ITC according to Rule 6(6) of CGST Rules, 2017 then you may furnish the GST ITC-01 containing detail of stock of inputs. .(REPLY dt. 19/2/2018)