Question5:

Do GST- CMP-03 is to be filed by all the Composition persons registered under the existing law (that are old laws) migrating on appointed day, as written on the top of the form, Or is it to be filed by those persons only who have to give tax on their stock ? And do it is to be filed for those also who was under composition in earlier law also and in GST also? Or by those only who was earlier a regular dealer and now the composition dealer? For example in our case, we have one client who was a Chemist and under Composition during VAT regime and it has opted for Composition in GST also from 1st July, 2017 and it has all purchases from Registered Dealer only  in VAT regime as the person was under composition and he was allowed to purchase from Registered Dealer only. Now do he has to give tax on his stock on 30th June? If no then whether he has to file CGST CMP 03? If yes then whether he has to give tax on stock consisted of Purchases from Registered Dealer? In another case we have one more client- which was regular dealer in VAT regime and opted for Composition from 1st July, 2017? He has some stock purchased from un-registered dealer- do he has to pay some tax on that stock? What is the last date for filing GST CMP 03? Is it appearing on GST portal and working?

Answer:

Furnishing of CMP-03 statement is necessary for such registered persons who were registered under any of the earlier laws i.e. Central Excise, Service Tax or VAT and have opted for Composition Levy Scheme on the appointed day for the purpose of GST. i.e 01.07.2017. Such persons might be having certain stock in their accounts which needed to be migrated into GST for the purpose of composition levy. This means, if any manufacturer/trader who was discharging tax liability under earlier laws but has opted for this scheme on the appointed day needs to furnish the said CMP-03 statement for migrating his stock into the new tax regime.   As per Rule 3(4) of CGST Rules, 2017, any person who files an intimation under sub-rule (1) to pay tax under section 10 shall furnish the details of stock, including the inward supply of goods received from unregistered persons, held by him on the day preceding the date from which he opts to pay tax under the said section, electronically, in FORM GST CMP-03, on the common portal within a period of ninety days from the date on which the option for composition levy is exercised or within such further period as may be extended by the Commissioner in this behalf. As per your example, the chemist  who was already registered under Composition Levy under VAT, also needs to furnish the said CMP-03 statement to migrate into the new tax regime. There is no need to pay taxes on 30.06.2017, after migration, the registered person will discharge his tax liabilities as per sale taking place. As far as the second example is concerned, in this case also, the registered person opting for the scheme needs to furnish CMP-03 to migrate his stock into GST. The said statement is not appearing on the Dash Board. We are in touch with Government department and it is expected that soon it will start appearing on the Dash Board. (Reply dt. 04/12/2017)