GST · Notice
CMP-05: Show cause notice — composition levy
Notice questioning eligibility to pay tax under the composition levy. What to do: test eligibility for the year in question, then file CMP-06 with the turnover working. Time to reply: 15 days from the date of the notice; the date stated on your notice always wins.
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Key facts
Notice questioning eligibility to pay tax under the composition levy.
| Form | CMP-05 (Show cause notice — composition levy) |
|---|---|
| Issued by | The GST officer named on the document |
| Issued under | Rule 6(4), CGST Rules 2017 |
| What it asks of you | A reply in CMP-06, within the time allowed |
| Your time to act | 15 days from the date of the notice; the date stated on your notice always wins. |
| Reply or appeal in | CMP-06 |
| If it is ignored | Denial of the composition option from the stated date, with tax recomputed under the regular scheme in CMP-07. |
Time allowed
Reply: 15 days from the date of the notice.
The date stated on your notice always wins.
What to do now
Test eligibility for the year in question
Turnover limit, inter-State outward supplies, supplies through an e-commerce operator and the nature of goods or services all matter.
File CMP-06 with the turnover working
If eligibility is lost, quantify the regular-scheme liability before the officer does.
What a reply contains
A reply usually covers the points below. This is an outline, not a draft: our expert team writes it on your own records.
- Reference: the CMP-05 notice's reference number and date, your GSTIN and the period it covers.
- An answer to each point the notice raises, in the same order, saying what you accept and what you dispute.
- Evidence for each point: the returns, books and documents each answer relies on.
- Where it is filed: CMP-06.
If it is ignored
- Denial of the composition option from the stated date, with tax recomputed under the regular scheme in CMP-07.
Official sources
Sources checked on 26 October 2026.
- CGST Rules 2017, rule 6 (validity of the composition option: CMP-05, CMP-06, CMP-07) · read 26 October 2026
- CGST Act 2017, section 10 (composition levy) · read 26 October 2026
Any provision named on this page but not listed here is to be confirmed by our expert team.
Frequently asked questions
What is a GST CMP-05 notice?
Notice questioning eligibility to pay tax under the composition levy.
How much time do I have to act on a GST CMP-05 notice?
Reply: 15 days from the date of the notice. The date stated on your notice always wins.
What happens if I ignore a GST CMP-05 notice?
Denial of the composition option from the stated date, with tax recomputed under the regular scheme in CMP-07.
Related guides
General information from the provisions this notice is issued under, not legal advice. The dates and periods stated on your notice always win. Our expert team can read the full notice with you.