The latest 55th GST Council meeting was held on December 21, 2024, in Jaisalmer, Rajasthan, and was chaired by the Union Finance Minister. An amendment is been proposed by the council in the field classification of registered persons for the taxpayers who choose for composition levy through FORM CMP-02
The latest meeting of the GST Council to amend sub-rule (1) of rule 19 of CGST Rules, 2017 to comprise the reference to FORM GST CMP-02 in the articulated rule to authorize the taxpayers to change their “category of registered person” in Table 5 of FORM GST CMP-02 through FORM GST REG-14.
For taxpayers, the ability to change the “Category of Registered Person” field in their GST registration profile is now available who opt for the composition levy scheme under the Goods and Services Tax (GST) via FORM CMP-02.
Read Also: GST Council Endorses the Recommendation of the Committee Regarding IGST Settlement
The objective of the amendment was to permit the taxpayers to precisely show in their registration profile the type of business they function (such as manufacturer, merchant, or restaurant service provider). The same would support drawing the registered category into compliance with the composition levy schemes entitling the provisions. Under the amendment, the taxpayers who have earlier filed FORM CMP-02 to elect for the composition scheme are covered.
Only the taxpayers who fulfill the specific requirements such as having a turnover cap of ₹1.5 crore (₹75 lakh for some special category states), are qualified for the composition plan. For the taxpayers GST Input tax credit (ITC) claims are restricted who opt for the composition levy therefore they are not able to collect the GST from the clients.
Amendment to the registered category of the person should be consistent with the method they operate the business. The GST authorities have made it simpler for the composition taxpayers to enrol by permitting the same modification which guarantees flexibility and compliance.
The meeting was attended by Union Minister of State for Finance Shri Pankaj Chaudhary and Revenue Secretary Ajay Seth along with Chief Ministers from Goa, Haryana, Jammu and Kashmir, Meghalaya, and Odisha, as well as Deputy Chief Ministers from Arunachal Pradesh, Bihar, Madhya Pradesh, and Telangana.
