Composition to Regular Conversion

Conversion becomes mandatory when your aggregate turnover exceeds ₹1.5 crore (₹75 lakh for special category states). It is also required if you start making inter-state supplies, begin e-commerce operations, or voluntarily wish to claim Input Tax Credit.

FORM GST CMP-04 must be filed within 15 days from the date of occurrence of the event necessitating conversion (e.g., turnover exceeding the threshold on the day of crossing). For voluntary conversion, it can be filed from the beginning of a financial year.

The closing stock as on the date of conversion must be declared. ITC on stock held on the date of conversion can be claimed subject to conditions, but the composition taxpayer must reverse ITC that was not claimed during the composition period.

Once you convert from composition to regular, you cannot opt back into the composition scheme for at least 365 days from the date of conversion. This restriction prevents frequent switching between the two schemes.

After conversion, you must file regular GST returns — GSTR-1 (monthly/quarterly) for outward supplies and GSTR-3B (monthly) for summary return with payment. You also become eligible to claim ITC on your business purchases.

Composition to regular conversion is the process of switching your GST registration from the Composition Scheme to the Regular GST Scheme. This involves filing FORM GST CMP-04 and transitioning from quarterly returns and fixed tax rates to regular monthly returns with ITC eligibility.

Our professional fee for composition to regular conversion is ₹599. This includes eligibility assessment, filing of FORM GST CMP-04, stock declaration assistance, and guidance on new return filing requirements under the regular scheme.

Conversion is mandatory when turnover exceeds ₹1.5 crore (₹75 lakh for special category states), when starting inter-state supplies, when beginning e-commerce operations, or when you voluntarily wish to claim Input Tax Credit on purchases.

FORM GST CMP-04 must be filed within 15 days from the date of the event necessitating conversion. For example, if turnover exceeds the threshold on a particular day, the conversion application must be filed within 15 days from that date.

The closing stock on the date of conversion must be declared. ITC on stock held on that date can be claimed subject to conditions, but composition taxpayers must reverse any ITC that was not claimed during the composition period.