GST CMP-03 explained: stock statement for migrated composition dealers

Purpose of CMP-03

A composition taxpayer cannot take input tax credit. When a migrated dealer moved straight into composition, the law needed details of goods in stock purchased from registered and unregistered persons, including goods bought from other states, so that credit issues on that stock could be settled.

The stock statement was part of the migration package for composition dealers. It worked alongside the CMP-01 intimation, which recorded the option itself, and the opening stock position shown in the books on the day before GST.

Where goods in stock had been purchased from unregistered persons or from other states, the statement captured that separately, because the treatment under the earlier law differed.

What it contained

• Stock of inputs held on the day before the option took effect
• Inputs in semi-finished and finished goods
• Whether goods were purchased from registered or unregistered persons
• Goods purchased from outside the state
• Value and tax details where available

Relevance today

No new CMP-03 filings are made in the normal course. Today, a normal taxpayer moving into composition through CMP-02 files ITC-03 to pay an amount equal to credit on stock and capital goods. CMP-03 remains relevant only where an officer examines the opening position of a composition dealer from 2017.

Record keeping

Keep the CMP-03 acknowledgement with the stock register of that date. If a query arises about the transition, these records show how the stock was treated.

Help

A professional can reconcile old stock statements with books when a query relates to the transition period.

Get it handled for you

Want your returns filed and reconciled every month without mismatch notices? Our team handles it end to end. Call or WhatsApp +91 63677 44602, or use the form below.

This guide explains the law in general terms as of October 2026. Time limits and requirements can depend on the facts of your case and on the notice you received.