GST Series – Part 26 – Furnishing of Return by Composition Dealer under GST– Section 39(2) of CGST Act 2017
1. The taxpayers who have opted GST Composition scheme are required to file only one return in every financial year.
2. Statutory Provisions-
|Section 39(3)||A registered person paying tax under the provisions of section 10, shall, for each financial year furnish a return, electronically, of turnover in the State, inward supplies of goods or /and services, tax payable, tax paid, and such other particulars as may be prescribed.|
|Rule 62(1)(i)||The taxable persons paying tax under composition scheme or simplified scheme for suppliers of service under Notification No. 2/2019-CT (Rate) dated 7-3-2019 are required to file a quarterly statement in form GST CMP-08 within 18 days from the end of quarter.- amended w.e.f. 23-4-2019.|
|Rule 62(1)(ii)||The taxable persons paying tax under composition scheme or simplified scheme for suppliers of service under Notification No. 2/2019-CT (Rate) dated 7-3-2019, are required to file yearly return in form GSTR-4 before 30th April following the end of the financial year|
|The persons paying tax under composition scheme are required to file yearly return, but tax is payable by them every quarter|
3. Extension of due date: CBIC vide Notification No. 59/2020–Central Tax extended due date of GSTR-4 for Financial Year 2019-20 to 31st August 2020
|Section 39(6)||The Commissioner may, for reasons to be recorded in writing, by notification, extend the time limit for furnishing the returns under this section for such class of registered persons as may be specified therein|
|Proviso to section 39(6)||Any extension of time limit notified by the Commissioner of State tax or Union territory tax shall be deemed to be notified by the Commissioner.|
4. Discharge of Tax Liability
Second proviso to section 39(7)
|Every registered person furnishing return under composition scheme shall pay to the Government the tax due taking into account turnover in the State or Union territory, inward supplies of goods or services or both, tax payable, and such other particulars during a quarter, in such form and manner, and within such time, as may be prescribed.|
5. CMP 08 A special procedure has been laid out by the CBIC via Notification no. 21/2019 – Central Tax dated 23rd April 2019 for composition dealers to pay tax & file their tax returns,
5.1 A composition dealer will use the Form CMP-08, which is a special statement-cum-challan to declare the details or summary of his/her self-assessed tax payable for a given quarter. It also acts as a challan for making payment of tax.
5.2 Contents of CMP 08
|CMP 08 – Summary of Self Assessed Liability
( Net of advances, credit/debit notes and any other adjustment due to amendment, etc
|Outward supplies (including exempt supplies)|
|Inward supplies attracting reverse charges (including import of services)|
|Tax Payable (1+2)|
|Interest Payable, if any|
|The summary figures of the value of supplies and tax payable for the period of three months shall be provided.|
|BACK||SAVE||PREVIEW DRAFT GST CMP 08||PROCEED TO FILE|
5.3 Procedure to file CMP 08 :- After clicking on the “Proceed to File” tab the window indicating Electronic Cash Balance will get displayed, where the taxpayer views the reported liabilities and balance available in cash ledger:-
5.4 Electronic Cash Ledger Balance
|Every registered person furnishing the CMP 08 shall discharge his liability towards tax or interest payable by debiting the electronic cash ledger.|
5.5 Payment of Tax
|Sr No.||Description||Tax Payable||Adjustment of negative liability of previous tax period||Interest payable||Pay in cash||Additional cash required|
|RCM||Other than RCM||RCM||Other than RCM||Tax/ Cess||Interest|
|Tick in the declaration box – I hereby solemnly affirm and declare that the information given herein above is true and correct to the best of my knowledge and belief and nothing has been concealed therefrom
|BACK||CREATE CHALLAN||PREVIEW DRAFT||FILE GST CMP 08|
|If sufficient balance is available in cash ledger then click on “File GST CMP-08”, if not then click on “Create Challan” and paid the tax liabilities accordingly|
5.6 Steps in filing CMP 08 :
Step 1. Log in to GST portal and navigate to the CMP-08 tile on the return dashboard
Step 2. Select the relevant financial year and choose the return filing period for the relevant quarter. Proceed by clicking on ‘SEARCH
Step 3.Click on ‘PREPARE ONLINE’ for the CMP-08 form (payment of self-assessed tax).
Step 4 Fill in the summary figures of the value of supplies and tax payable for a period of three months. Enter the interest amount in case of delay in submission of CMP-08 beyond the due date applicable.
Step 5 Click on ‘SAVE’ to save the details entered.
Step 6 Click on Proceed to File. A page showing Payment of Tax will reflect on the screen.
Pay the amount challan and proceed with filing return.
Step 7 Select Authorised signatory and click on File GST CMP-08.
Step 8 File the return using DSC or EVC.A success message will appear with the ARN i.e. (Acknowledgement Reference Number.)
Step 9 Click on Download Filed GST CMP-08.
5.7 Important points – filing CMP 08 :
(a) The negative value of supplies in may be reported, if such value comes after adjustment of advances, credit/debit notes, and adjustments, etc.
(b) If the total tax payable becomes negative then the same shall be carried forward to the next tax period for utilizing the same in that tax period.
(c) Interest shall be levied, if payment is made after the due date
(d) The taxpayer needs to file a NIL return even if there is no supply/tax liability during the period.
(e) There is no column provided to enter a late fee and as if now, the GST portal is also not calculating late fee ( though as per GST Rules, late fee @ Rs 200(100+100) is payable in case of delay in filing the return.
6. Prescribed GST Rules – CMP 08 & GSTR 4
|Rule 62(3)||The return file under Composition Scheme shall include the following details:- (a) Invoice wise inter-State and intra-State inward supplies received from registered and un-registered persons; and (b) Consolidated details of outward supplies made.
Thus , the invoice wise purchase details indicating interstate or intrastate purchase need to be reflected in GST CMP 08 & GSTR 4
6.1 Opt in for Composition Scheme
|Rule 62(4)||A registered person opted to pay under composition or availing the benefit of notification no. 02/2019 dated 07.03.2019 ( benefit of supply of services under composition ) from the beginning of the year.
He shall furnish the details of supplies related to the period prior to such option in respective return ( GSTR 1 / GSTR 3B etc ) till the due date of furnishing the return for the month of September of the succeeding financial year or furnishing of annual return of the preceding financial year, whichever is earlier till September
|Explanation to Rule 62(4)||The person shall not be eligible to avail input tax credit on receipt of invoices or debit notes from the supplier for the period prior to his opting for the composition scheme or opting for paying tax under notification 02/2019 dated 07.03.2019|
6.2 Withdraw for Composition Scheme
|Rule 62(5)||A registered person opting to withdraw from the composition scheme at his own motion or where the option is withdrawn at the instance of the proper officer shall, where required, furnish a statement for the period for which he has paid tax under the composition scheme till the following dates :
CMP 08 –the 18th day of the month succeeding the quarter in which the date of withdrawal falls
GSTR 4 the 30th day of April following the end of the financial year during which such withdrawal falls.
|Rule 62(6)||A registered person who ceases to avail the benefit of notification no. 02/2019 dated 07.03.2019, where required, furnish a statement till the following dates
CMP 08 –the 18th day of the month succeeding the quarter in which the date of cessation takes place
GSTR 4 the 30th day of April following the end of the financial year during which such cessation happens.
7 NIL Return
|Section 39(8)||Every registered taxable person who is required to file the return under composition scheme shall furnish a return for every tax period, whether or not any supplies of goods or services or both have been effected during such tax period|
8. Rectification of Return
|Section 39(9)||if any registered person after furnishing a return under composition scheme discovers any omission or incorrect particulars therein, other than as a result of scrutiny, audit, inspection or enforcement activity by the tax authorities, he shall rectify such omission or incorrect particulars in such form and manner as may be prescribed subject to payment of interest under this Act.|
|Provision to Section 39(9)||No such rectification of any omission or incorrect particulars shall be allowed after the due date for furnishing of return for the month of September or second quarter following the end of the financial year to which such details pertain, or the actual date of furnishing of relevant annual return, whichever is earlier.|
9. Return for previous tax periods
|Section 39(10)||A registered person shall not be allowed to furnish a return for a tax period if the return for any of the previous tax periods has not been furnished by him.|
10. GSTR 4
10.1 The annual GSTR 4 return filing will get activated once the taxpayer has finished filing of all the quarters of CMP-08 of the given financial year
10.2 Login to dashboard, click on Services > Returns > Annual Return >Select FY>Search>GSTR 4> FILE THE RETURN.
10.3 Contents of GSTR 4
|Table 2 (a)||Legal Name of the registered person||Auto Populated|
|Table 2(b)||Trade Name, if any|
|Table 3(a)||The aggregate turnover in the preceding financial year (in case the business did nil transaction or turnover in the last FY or not registered it can put ‘0’ zero)|
|Table 3(c )||Date of ARN|
Table 4: Inward supplies including supplies on which tax is to be paid on reverse charge
|Table 4A||Inward supplies received from a registered supplier ( other than supplies attracting reverse charges)|
|Table 4B||Inward supplies received from a registered supplier ( supplies attracting reverse charges)|
|Table 4C||Inward supplies received from an unregistered supplier|
|Table 4D||Import of services|
|The tax amounts in Table-4 are auto-calculated on the basis of the values entered in Taxable Value and tax rate fields. However, the tax amount is editable. The CESS is to be entered by the taxpayer.|
Table 5 Summary of self-assessed liability: The details in this table will get auto-populated from Form GST CMP-08. & is non-editable.. This table will consolidate the payment details of all the CMP-08 filed during the year, i.e. payment made on outward supplies, inward supplies attracting reverse charge, tax paid, and interest paid. The amount in this table shall be net of debit/credit Note and any other adjustments due to amendments etc.
|Table 5(1)||Taxable value and tax paid on outward supplies including exempted supplies|
|Table 5(2)||Taxable value and tax paid on inward supplies (including import)attracting reverse charges|
|Table 5(3)||Total Taxable Value & Tax Paid ( 5(1) + 5(2)|
|Table 5(4)||Interest Paid if any|
|The excess amount deposited through GST CMP-08, available in negative liability statements will also get adjusted towards liabilities if any.
If the available balance in electronic cash ledger is less than the amount required to offset the liabilities, The challan can be created directly by clicking on the CREATE CHALLAN button
Table 6 Tax rate wise details of outward supplies/inward supplies attracting reverse charge during the year
|Table 6||Outward supplies and inward supplies attracting reverse charge tax rate wise along with the total taxable value.
The IGST, CGST, SGST, and Cess amount will get auto-populated.
|The details of inward supplies (from table 4B, 4C, and 4D for each tax rate) will be auto-drafted in Table-6 only after the Taxpayer has clicked on the ‘Proceed to file’ button. Before that, the balance will be displayed as ‘0’ (zero).
The details of outward supplies in Table-6 (Row 12-16) of GSTR-4 have to be entered manually by the taxpayer
Once you entered outward supply details in Table-6 and click the “Proceed to file” button, liability on the RCM basis is auto-populated from details entered in Table 4B,4C, and 4D. Thereafter, Table-6 shows your total tax liability
Table 7: TDS/TCS Credit received
|Table 7||GSTIN of the deductor, gross invoice value, and the amount of TDS deducted shall be mentioned here by the taxpayer.
TDS/TCS credit received from a supplier or e-commerce operator will be auto-populated
Table 8: Tax, interest, late fee payable and paid
|Table 8||Tax amount paid and payable will be auto-populated
Interest & Late fee payable & paid need to be provided in this table. Liabilities can be discharged only through electronic cash ledger.
Table 9 Refund Claimed From Electronic Cash ledger
|Table 9||A refund for excess tax paid can be claimed through this table. The amount should be divided into tax, interest, penalty, fee, and others.|
File button is enabled only if (a)No additional cash is required to be paid for liabilities if any. (b)The taxpayer has clicked on the declaration checkbox (c )The taxpayer has selected authorized signatory details from the drop-down list
10.4 Mode of Signing Form GSTR 4 : Form GSTR-4 can be filed by using DSC or EVC
10.5 GSTR 4 cannot be revised after filing on the GSTN Portal
10.6 Post Filing of Form GSTR-4 : After Form GSTR-4 (Annual Return) is filed:
(a) ARN will be generated on the successful filing of the Form.
(b) An SMS and email will be sent to the mobile number of the authorized signatory on the successful filing of Form GSTR-4 (Annual Return).
(c) Electronic Cash Ledger and Electronic Liability Register Part-I will get updated.
10.7 Viewing and downloading filed Form GSTR-4 :To view and download filed Form GSTR-4 (Annual Return) login to the GST Portal and navigate to Services > Returns > View/Download Filed Returns.
11. Late Fee: A late fee of Rs. 200 per day is levied if the GSTR-4 is not filed within the due date.
The maximum late fee that can be charged cannot exceed Rs. 5,000.
12. An Excel based offline tool is now available to file GSTR-4 (Annual Return) on the GST portal.
The Author can be approached at [email protected]
Part 27 of the series will cover furnishing of Return by other tax payers – Sec 39 of CGST Act 2017