Find
Yes. A new applicant can choose composition in the registration application REG-01 itself. The scheme then applies from the effective date of registration.
GST
Choosing composition in a new GST registration
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Provisions
Rule 3, CGST Rules 2017; Sec 10(1), CGST Act 2017
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.
Close
- Decide whether composition suits your customers and supplies
- Select the composition option in REG-01
- Confirm the category: manufacturer, trader, restaurant or services
- Start issuing bills of supply from day one
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