# Procedural Aspects of Composition Scheme
This lesson covers the procedural and compliance side of the composition scheme — opting in, opting out, returns, payments, and continuing conditions. These rules apply to BOTH Section 10(1)/10(2) (goods/restaurants) and Section 10(2A) (services/mixed).
## A. Opting In
| Action | Form | Timing |
|---|---|---|
| Intimation to opt for composition (at start of FY) | Form GST CMP-02 | Before commencement of FY |
| Intimation to opt at the time of registration | Form GST REG-01 (Part B) | At registration |
| Statement of ITC reversal on opting in (stock-related) | Form GST ITC-03 | Within 60 days of commencement of FY (or scheme opting) |
## B. Continuing Conditions (Rule 5)
1. Must NOT be a CTP or NRTP.
2. Goods held in stock should NOT have been purchased in inter-State trade / from unregistered persons (where applicable).
3. Must pay tax under RCM on inward supplies at NORMAL rates (not composition rate).
4. Must mention 'Composition taxable person' on every notice / signboard at place of business.
5. Must mention 'Composition taxable person, not eligible to collect tax on supplies' at the top of the Bill of Supply.
6. Cannot issue a Tax Invoice; must issue a Bill of Supply.
## C. Opting Out / Withdrawal
- Voluntary withdrawal: File Form GST CMP-04 within 7 days of withdrawal.
- Automatic lapse: If T/O exceeds threshold mid-year, the option lapses from the date of crossing.
- Stock statement on the date of opting out must be furnished (for ITC restoration).
## D. Returns and Payment
| Compliance | Form | Frequency | Due Date |
|---|---|---|---|
| Tax Payment | Form CMP-08 | Quarterly | 18th of the month following the quarter |
| Annual Return | Form GSTR-4 | Annually | 30th June of the succeeding FY |
### Quarterly Payment Due Dates
| Quarter | Due Date |
|---|---|
| Apr - Jun | 18th July |
| Jul - Sep | 18th October |
| Oct - Dec | 18th January |
| Jan - Mar | 18th April |
## E. Key Restrictions Common to Both Schemes
- No ITC available on inward supplies.
- Cannot collect GST from recipient.
- Cannot make inter-State OUTWARD supplies of goods (services to a limited extent under 10(2A)).
- Cannot supply through ECO required to collect TCS.
- Cannot supply non-taxable goods.