Answer

1. F

   Facts

   Yes. A new applicant can choose composition in the registration application REG-01 itself. The scheme then applies from the effective date of registration.

2. P

   Provisions and law

   • Rule 3, CGST Rules 2017Intimation to opt in CMP-02 before the start of the financial year; ITC-03 within 60 days for ITC on stock
   • Sec 10(1), CGST Act 2017Eligible registered persons with aggregate turnover up to Rs 1.5 crore in the preceding year may opt to pay tax at composition rates
3. A

   Analysis

   Example: a new bakery in Lucknow applies in June and ticks the composition option in REG-01. It pays 1 percent or 5 percent, depending on whether it is a manufacturer or a restaurant, from the registration date. Choose carefully: if you will sell to registered businesses who want ITC, or to other States, composition is not a good fit.

4. C

   Conclusion

   1. 1Decide whether composition suits your customers and supplies
   2. 2Select the composition option in REG-01
   3. 3Confirm the category: manufacturer, trader, restaurant or services
   4. 4Start issuing bills of supply from day one

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.