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Frequently Asked Questions
1. What is meant by Compulsory Withdrawal from Composition Levy?
A taxpayer can opt out of Composition levy in any of the two ways:
Voluntarily opt out by filing Form GST CMP-04 on the GST Portal.
Compulsorily removed by the Tax Official at any time during the financial year.
If the taxpayer does not opt out within 7 days of disqualifying event, proceedings for compulsory withdrawal can be initiated by the Tax Official.
2. What are the pre-conditions for Compulsory Withdrawal from Composition Levy?
Taxpayer has a valid and active GSTIN.
Taxpayer has submitted “Application to Opt for Composition levy” for the next financial year or is flagged as Composition taxpayer currently.
