GST Composition Scheme participants are required to file GSTR-4 quarterly. Registrants of the GST Composition Scheme must file a single tax return every quarter instead of three monthly returns, and they are required to pay a flat tax on their sales turnover. GST composition schemes are not available to all businesses. In order to be eligible for the Composition Scheme, a company must have a turnover less than Rs.75 lakhs and meet other criteria.
GST Composition Scheme
It provides small taxpayers with a simpler GST compliance mechanism by simplifying the rules for those whose turnover is under Rs.75 lakhs per annum (in a few states, up to Rs.50 lakhs per annum). Taxes will be collected at prescribed rates and quarterly GST returns will be required of entities registered under the GST composition scheme.
GST composition scheme does not apply to service providers other than restaurants.
What is GSTR-4 filing?
GST composition scheme participants are required to file GSTR 4 quarterly. The 10th, 15th, and 20th of each month are the usual filing dates for GSTR-1, GSTR-2, and GSTR-3. Therefore, only persons composition dealers are required to file GSTR-4.
What is the Due Date for Filing GSTR-4?
In order to file a GSTR-4 every quarter, the filing must be submitted by the 18th of the month following the quarter. There will be four deadlines to file GSTR-4 returns: 18 April, 18 July, October 18 and January 18.
While GSTR1, GSTR2 and GSTR3 return due dates have been extended, gstr 4 due date remains unchanged on 18th of October.
What details must be filed in the GSTR-4 return?
The GSTR-4 returns will include invoices that show interstate and intrastate inward supplies received from registered and non-registered individuals. Furthermore, the taxpayer must provide consolidated details of outward supplies in addition to invoice-wise details of inward supplies.
Every month, the GSTIN of components scheme suppliers will be matched with the information pertaining to outward supplies provided by regular taxpayers. As a result, the composition taxpayer only needs to add, correct, or delete the GSTIN matched details from the GSTR-4 filing and file the return.
When can a Business be enrolled under the GST Composition Scheme?
The composition scheme may be applied to a business when applying for a new GST registration. The composition scheme requires all other persons to file FORM GST CMP-02 by the beginning of the appropriate financial year.
Businesses that are already registered with GST have until 16th August, 2017, to elect the composition scheme in FORM GST CMP-01.
What are other filings required for entities registered composition schemes?
A person enrolling under the composition scheme must also submit a quarterly GST return in FORM GSTR-4 on the day preceding the date from which the scheme will apply to them, along with details of stock, including inward supplies of goods received from unregistered persons. FORM GST CMP-03 has to be filed within sixty days of the date composition scheme becomes effective, on the common portal or at a GST Facilitation Center.