GSTR-4: Composition scheme is a scheme in which Government has given option to small taxpayers to opt for low compliance of Goods and Service Tax regime (GST) and lower rate of GST for composition taxpayers as compared to normal GST rates. GSTR 4 is the annual return for GST composition taxpayers. It is now available in GST Portal for filing. Before it was a quarterly return but now it is annual return from FY 2019-20.
Who can file GSTR-4?
Following persons are required to file an annual return in form GSTR-4-
- Every person paying tax under Composition Scheme. (Supplier of Goods upto Rs 1.5 crore)
- Every Registered person paying tax by availing the benefit of Notification no. 2/2019 CT(R) dated 7/3/2019. (Supplier of services upto Rs 50 lakhs)
GSTR-4 has to be filed for a financial year or part of a financial year electronically.
Read More: How to apply for Composition Scheme in GST for FY 2020-21?
When payment of GST has to be made?
The GST under Composition scheme is paid quarterly. The person is required to furnish the statement in form GST CMP-08 which contains details of payment of self-assessed tax.
What is the Due Date of GSTR-4?
GSTR 4 is required to be filed annually basis (Before 31.03.2019, GSTR 4 was quarterly return). The Due date for filing Annual GSTR-4 is 30th April of next financial year. But the due date for financial year 2019-2020 has been extended to 31st October, 2020.
However, due date for GST CMP-08 for a quarter shall be 18th day of the month succeeding such quarter. For e.g. due date for quarter April-June shall be 18th July.
Which all GST returns, a composition dealer is required to file?
A composition dealer is required to file three returns-
- GST CMP 08 – Quarterly statement. Read More: Step by Step guide of filing CMP-08 for composition taxpayer
- GSTR 4 – Annual Return
- GSTR 9A – Annual Return
Can GSTR 4 be revised?
No, once GSTR 4 filed, it can’t be revised.
What details are entered in GSTR 4?
Contents of GSTR-4
- Basic and Other details
- GSTIN
- Legal name & Trade name
- TDS/TCS credit received
- Tax, interest, late fee payable and paid
- Refund claimed from Electronic cash ledger
- Details regarding Inward and Outward Supplies
- Invoice wise details of all inward supplies which includes inter and intra state supplies and supplies from registered and unregistered persons including reverse charge supplies and import of services.
- Summary of all self-assessed liability as per GST CMP-08 which shall be Net of advances, credit and debit notes and any other adjustments due to amendment tables etc.
- Tax rate wise details of outward supplies/inward supplies attracting reverse charge which shall be Net of advances, credit and debit notes and any other adjustments due to amendments etc. and consolidated details of Outward supplies.
Hence, there is no requirement to provide invoice wise details of outward supplies as they are neither entitled to input tax credit nor can they pass any input tax credit to its customer. However, details of inter-state and intra-state inward supplies received from registered and unregistered persons are to be provided invoice wise.
The inward supplies of such person gets auto populated in form GSTR-4A for viewing from form GSTR-1.
Read Also: Everything about FORM GST CMP 08 and new changes in GSTR-4
Can we change in Tax scheme at any time during the year?
We can change from Composition to Normal scheme at any time during the year. However, for changing from normal to composition, one can do only in the beginning of the Financial Year.
A) Change from GST Regular scheme to Composition Scheme
Statements/ Returns relating to period prior to composition scheme shall have to be furnished earlier of-
- Due date of furnishing return for the month of September of the succeeding financial year; or
- Furnishing of Annual return of the preceding financial year.
Read Also: Important Difference between Regular and Composition scheme in GST
B) Change from Composition tax payer to Regular tax scheme
Statements/ Returns relating to period prior to Regular GST scheme shall have to be furnished till
- In case of GST CMP-08:- 18th day of the month succeeding the quarter in which the date of withdrawal/ cessation falls. For e.g. if the date of withdrawal/ cessation falls on 5th May, then GST CMP-08 has to be furnished by 18th July, 2020.
- In case of GSTR-4:- 30th April following the end of financial year during which such withdrawal/cessation falls.
What is the Late Fee and Penalty on GSTR-4?
Late fee of Rs. 200 per day is levied if GSTR-4 is not filed within the due date would be charged as long as it continues the delay. However, maximum late fee that can be charged cannot exceed Rs. 10,000.
Who can opt for Composition Scheme?
Goods: Small taxpayers with an aggregate turnover limit in a preceding financial year up to Rs. 1.5 Crore are eligible for composition scheme. However, the limit is Rs. 75 lakh in respect of North-Eastern states and Himachal Pradesh special category states namely Arunachal Pradesh, Uttarakhand, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura.
Services: Notification no. 2/2019 CT(R) dated 7/3/2019 –Before only restaurant services were covered under composition scheme. However, after this notification, the benefits has extended to person engaged exclusively in supply of services other than restaurant service. It applies to person whose aggregate turnover in preceding financial year is up to Rs. 50 lakh.
Read More: Composition Scheme under GST- Question and Answers
What are the Rate of GST composition scheme?
| Particulars | GST Rate |
|---|---|
| Manufacturers other than manufacturer of Pan Masala, Ice Cream & Tobacco | 1% of turnover in the state/ union territory |
| Restaurant service | 5% of turnover in the state/ union territory |
| Other eligible supplier | 1% of turnover of taxable supplies of goods or services in the state/ union territory. |
| Supply of other services | 6% on supply of taxable supplies of services in state/ union territory. |
For any questions, you may reach us at Discussion Forum
The author of above article is CA Rahul Gaur.
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