Businesses registered under the Goods and Services Tax (GST) Composition Scheme must submit Form GST CMP-04 if they wish to withdraw from this scheme. This withdrawal might occur voluntarily or due to specific conditions no longer being met.

A dealer needs to file GST CMP-04 in these scenarios:

• A voluntary decision to exit the Composition Scheme.
• When their annual turnover surpasses the prescribed limits.
• Non-compliance with any of the eligibility criteria for the Composition Scheme.

According to a notification from January 1, 2018, for traders, turnover refers specifically to the ‘turnover of taxable supplies of goods’. The GST CMP-04 form must be filed within seven days from the date a taxpayer decides to opt out of the Composition Scheme or becomes ineligible for it. For instance, if a dealer’s turnover exceeds ₹1.5 crore on December 15, 2017, they must file CMP-04 by December 22, 2017. This application is submitted electronically via the GST Portal.

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Step-by-Step Procedure for Filing GST CMP-04 on the GST Portal

Follow these instructions to complete the GST CMP-04 filing process online:

1. Access the GST Portal: Begin by logging into your account on the official GST Portal.
2. Navigate to Withdrawal Application: From the main menu, select ‘Services’, then ‘Registration’, and finally, ‘Application for Withdrawal from Composition Levy’.
3. Specify Reason for Withdrawal: A dropdown menu will appear. Choose the appropriate reason for opting out of the Composition Scheme from the available options.
4. Complete Verification and Submission:
   • Tick the ‘Verification’ checkbox.
   • Enter the ‘Name of Authorized Signatory’.
   • Fill in the ‘Place’ field.
   • Click the ‘SAVE’ button.
   • Proceed to file your CMP-04 using either a Digital Signature Certificate (DSC) or Electronic Verification Code (EVC).

Upon successful submission of GST CMP-04, your ‘Taxpayer Type’ in ‘My Profile’ will automatically update to ‘Regular’.

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