GST Council Proposes Amendment in ‘category of registered person’ for taxpayers opted for Composition Levy FORM CMP-02

The Union Finance Minister Nirmala Sitharaman chaired the 55th meeting of the GST Council today (21st December 2024) at Jaisalmer, Rajasthan. The council proposed an amendment in the field ‘category of registered person’ for taxpayers who opted for composition levy through FORM CMP-02

The latest meeting of GST Council to amend sub-rule (1) of rule 19 of CGST Rules, 2017 to include reference to FORM GST CMP02 in the said rule to allow the taxpayers to modify their “category of registered person” in Table 5 of FORM GST CMP-02 through FORM GST REG-14.

The ability to change the "Category of Registered Person" field in their GST registration profile is now available to taxpayers who choose the composition levy scheme under the Goods and Services Tax (GST) through FORM CMP-02.

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The purpose of the change was to allow taxpayers to accurately indicate in their registration profile the type of business they operate (such as manufacturer, merchant, or restaurant service provider). This will assist in bringing the registered category into compliance with the composition levy scheme's qualifying requirements. Taxpayers who have previously filed FORM CMP-02 to elect for the composition scheme are covered by the modification.

Only taxpayers who meet certain requirements, like having a turnover cap of ₹1.5 crore (₹75 lakh for some special category states), are eligible for the composition plan. Input tax credit ( ITC ) claims are prohibited for taxpayers who choose the composition levy, thus they are unable to collect GST from clients.

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Modifications to the registered person's category must be consistent with how they really conduct business. The GST authorities have made it easier for composition taxpayers to register by allowing this modification, which guarantees more flexibility and compliance.

 addition to 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, the meeting was attended by Union Minister of State for Finance Shri Pankaj Chaudhary and Revenue Secretary Ajay Seth.

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