In last article on Composition scheme, we discussed the meaning of composition scheme and its related provisions. https://goo.gl/XMxWfc. In this article we will discuss the compliance part of composition scheme.
A composition dealer is required to file only 1 return i.e. GSTR 4 that too on quarterly basis,
Thus, he is not required to file complicated 3 monthly return (GSTR 1, GSTR 2, GSTR 3), Oooops 4 returns (don’t forget GSTR 3B).
GSTR 4 is a consolidated return which includes details of sales, purchases, tax payment, interest, late fee, refund etc.
Manner of filing GSTR 4
GSTR 4 can be filed in 2 manner:-
1. ONLINE- In this method, user will simply go to his portal and provide details online and file return.
2. OFFLINE- In this method, user can download GSTN GSTR 4 offline utility and file his return through this utility.
Process of GSTR 4 filing
But as GSTR 1 and GSTR 5 is not filed for the month of July-Sep, for first 2 quarters i.e. jul- sep 2017 and oct- dec 2017, The process will be simple and composition dealer will just upload his data and no auto population of data.
Thus process in online method of filing becomes:-
> STEP 1- Save GSTR 4 data.
> STEP 2- Once data is saved, next step is to Submit the data. This will freeze data and no more changes can be made.
> STEP 3- After submission final tax liability is get calculated by the portal on the basis of data submitted. Then user will offset his tax liability with ITC and CASH.
> STEP 4- After successful offset, now user can file his GSTR 4.
However process in offline method of filing becomes:-
> STEP 1- In case of offline method, download GSTR 4 offline utility from download section on gst.gov.in. This utility contains some an excel file with different worksheet.
First step is to enter data in the work sheet(s) as applicable. It is not mandatory to fill data in all sheets, sheet(s) not applicable can be left blank.
> STEP 2- After entering data in the respective worksheet(s), validate the data by clicking on validate button. On successful validation, generate summary by clicking on generate summary button in the excel file.
> STEP 3- Thereafter user will generate JSON file to upload data entered in worksheet(s) on GST Portal. This JSON file can be uploaded on GST portal and after successful upload, data will come online.
> STEP 4- Once data comes online, steps as discussed in online method will be repeated such as submit, offset liability and file.
Now, we see details which will be provided in GSTR 4.
The whole return can be divided into 2 parts.
PART 1- This part includes 8 types of details. The composition dealer will simply provide details in particular type as applicable. Out of 8 details only one sheet/ Tile relates to detail of SALES, other all belongs to details of PURCHASES.
4B(B2B)- Inward supplies received from registered supplier(Attracting reverse charge)
i.e. Inward supplies received from registered supplier not attracting reverse charge is not required to report here.
4C (B2BUR)- Inward supplies received from unregistered supplier
4D (IMPS)- Import of service
5B (CDNR)- Debit/Credit Notes from registered person
5B (CDNUR)- Debit/Credit Notes from unregistered person
6 (TXOS)- Tax on outward supplies(Net of advances and goods returned)
8A (AT)- Advance amount paid for reverse charge supplies in the tax period
8B (ATADJ)- Advance amount paid for reverse charge supplies in the tax period
PART 2- This is basically consist details of tax payment, Interest, Late fee, refund etc. This will get calculated on the basis of part 1. Interest will be computed on the basis of date of payment made and late fee will be computed on the basis of date of filing of return.
Other than GSTR 4, Composition dealer is also required to file an annual return in GSTR 9A (Will discuss in detail later).