Whether you're growing or simplifying your business, UrbanDox ensures a hassle-free GST scheme conversion between Composition and Regular schemes.
- Expert evaluation to determine eligibility and benefits
- Preparation and filing of online conversion application
- Documentation support and portal compliance
- Assistance in tax transition and ledger adjustments
- Post-conversion filing guidance for GSTR-1 and GSTR-3B
- Timely reminders for GST filing under the new scheme
Why Trust Us
Why Trust Us
What is GST Scheme Conversion?
Under GST, businesses can opt for two types of schemes: the Regular Scheme, suited for medium to large businesses with inter-state transactions, and the Composition Scheme, ideal for small businesses with lower turnover and no interstate supply.
GST scheme conversion refers to shifting from one scheme to another, either voluntarily or due to eligibility changes. For example, if your turnover exceeds ₹1.5 crore (₹75 lakh for specific states), you must switch from Composition to Regular. Conversely, if your turnover drops and you want easier compliance, you may switch to Composition.
The transition must be declared on the GST portal within a stipulated time, and filing obligations change based on the scheme selected.
Why Convert Your GST Scheme?
Switching GST schemes offers financial and compliance benefits aligned with your business needs. It helps you remain within legal limits while optimizing your tax and operational efforts.
-
Adjust compliance burden based on business scale
-
Opt for simplified returns and lower tax under Composition
-
Migrate to Regular scheme when expanding inter-state or online
-
Avoid late fees and penalties for incorrect scheme usage
-
Realign Input Tax Credit (ITC) and maintain legal consistency
-
Improve cash flow and vendor confidence with proper filing
Who Should Consider GST Scheme Conversion?
Businesses that may consider switching GST schemes include:
-
Small traders and manufacturers aiming for simpler compliance
-
Service providers now eligible under new Composition rules
-
Growing businesses crossing Composition threshold
-
E-commerce sellers or inter-state suppliers needing Regular scheme
-
Businesses facing GST audits or turnover inconsistencies
-
Those making high-value B2B sales requiring ITC
Documents Required for GST Scheme Conversion
Ensure the following documents are ready for a smooth and successful conversion:
-
GST login credentials
-
PAN and Aadhaar of business owner
-
Latest GST return filings (GSTR-4 or GSTR-3B)
-
Bank account details
-
Financial turnover proof
-
Declaration for stock and Input Tax Credit (if switching to Regular)
-
Stock details as on date of conversion
-
Any notices or previous scheme application copies (if applicable)
GST Scheme Conversion Process
UrbanDox manages the entire transition on your behalf with accuracy and timely compliance:
-
Analyze current GST filings and business turnover
-
Confirm eligibility for target scheme (Regular or Composition)
-
Log in to the GST portal and navigate to scheme change section
-
File the application using Form CMP-02 or GST REG-29
-
Upload declarations and supporting documents
-
Receive approval or rejection notice from GST officer
-
Update accounting systems and stock reporting accordingly
-
File transition returns (GSTR-4/GSTR-3B) as per the new scheme
-
Provide ongoing support for compliance under new structure
Important Things to Remember
Switching schemes involves compliance realignment and timeline awareness.
-
Turnover limit for Composition: ₹1.5 crore (₹75 lakh for some states)
-
You must notify GST department before scheme change deadlines
-
No Input Tax Credit under Composition scheme
-
File GSTR-4 for Composition; GSTR-3B & GSTR-1 for Regular
-
Declare stock and Input Credit while switching to Regular
-
You cannot switch mid-financial year without proper documentation
-
Change impacts your billing format and invoice type
-
E-commerce sellers are not eligible for Composition scheme
-
Penalties may apply for late or incorrect conversion
-
UrbanDox provides full support for stock and ITC transition
Talk to Our Team Our Experts Are Ready
What is GST Scheme Conversion?
Under GST, businesses can opt for two types of schemes: the Regular Scheme, suited for medium to large businesses with inter-state transactions, and the Composition Scheme, ideal for small businesses with lower turnover and no interstate supply.
GST scheme conversion refers to shifting from one scheme to another, either voluntarily or due to eligibility changes. For example, if your turnover exceeds ₹1.5 crore (₹75 lakh for specific states), you must switch from Composition to Regular. Conversely, if your turnover drops and you want easier compliance, you may switch to Composition.
The transition must be declared on the GST portal within a stipulated time, and filing obligations change based on the scheme selected.
Why Convert Your GST Scheme?
Switching GST schemes offers financial and compliance benefits aligned with your business needs. It helps you remain within legal limits while optimizing your tax and operational efforts.
-
Adjust compliance burden based on business scale
-
Opt for simplified returns and lower tax under Composition
-
Migrate to Regular scheme when expanding inter-state or online
-
Avoid late fees and penalties for incorrect scheme usage
-
Realign Input Tax Credit (ITC) and maintain legal consistency
-
Improve cash flow and vendor confidence with proper filing
Who Should Consider GST Scheme Conversion?
Businesses that may consider switching GST schemes include:
-
Small traders and manufacturers aiming for simpler compliance
-
Service providers now eligible under new Composition rules
-
Growing businesses crossing Composition threshold
-
E-commerce sellers or inter-state suppliers needing Regular scheme
-
Businesses facing GST audits or turnover inconsistencies
-
Those making high-value B2B sales requiring ITC
Documents Required for GST Scheme Conversion
Ensure the following documents are ready for a smooth and successful conversion:
-
GST login credentials
-
PAN and Aadhaar of business owner
-
Latest GST return filings (GSTR-4 or GSTR-3B)
-
Bank account details
-
Financial turnover proof
-
Declaration for stock and Input Tax Credit (if switching to Regular)
-
Stock details as on date of conversion
-
Any notices or previous scheme application copies (if applicable)
GST Scheme Conversion Process
UrbanDox manages the entire transition on your behalf with accuracy and timely compliance:
-
Analyze current GST filings and business turnover
-
Confirm eligibility for target scheme (Regular or Composition)
-
Log in to the GST portal and navigate to scheme change section
-
File the application using Form CMP-02 or GST REG-29
-
Upload declarations and supporting documents
-
Receive approval or rejection notice from GST officer
-
Update accounting systems and stock reporting accordingly
-
File transition returns (GSTR-4/GSTR-3B) as per the new scheme
-
Provide ongoing support for compliance under new structure
Important Things to Remember
Switching schemes involves compliance realignment and timeline awareness.
-
Turnover limit for Composition: ₹1.5 crore (₹75 lakh for some states)
-
You must notify GST department before scheme change deadlines
-
No Input Tax Credit under Composition scheme
-
File GSTR-4 for Composition; GSTR-3B & GSTR-1 for Regular
-
Declare stock and Input Credit while switching to Regular
-
You cannot switch mid-financial year without proper documentation
-
Change impacts your billing format and invoice type
-
E-commerce sellers are not eligible for Composition scheme
-
Penalties may apply for late or incorrect conversion
-
UrbanDox provides full support for stock and ITC transition
Frequently Asked Questions (FAQ's)
Q: What is the turnover limit for the Composition Scheme?
A: ₹1.5 crore (₹75 lakh in special category states).
Q: Can service providers opt for Composition Scheme?
A: Yes, certain service providers are eligible up to ₹50 lakh turnover.
Q: How do I switch from Composition to Regular scheme?
A: File Form CMP-04 on the GST portal with proper declarations.
Q: Is stock declaration required during conversion?
A: Yes, especially when switching from Composition to Regular.
Q: Will I lose Input Tax Credit if I switch to Composition?
A: Yes, you cannot claim ITC under Composition scheme.
Q: Can I switch mid-year?
A: You must apply at the beginning of the financial year or as per conditions.
Q: Will GSTIN change after conversion?
A: No, the GSTIN remains the same. Only the scheme changes.
Q: Are there penalties for using the wrong scheme?
A: Yes, incorrect usage can attract fines and notices.
Q: Does UrbanDox help with post-conversion filings?
A: Yes, we offer ongoing compliance support under your new scheme.
Q: How long does the conversion take?
A: Typically 3–5 working days, depending on documentation and portal status.
