Who can opt for GST composition scheme?
Not every taxable person is entitled to opt GST composition scheme. Only taxpayers having aggregate turnover less than Rs 100 lakhs (in case of Special category states, the limit is Rs 75 lakh) in a financial Year can opt for composition scheme. The aggregate turnover shall be calculated by considering all business registered with the same PAN number. This article will provide you with what Returns A Composition Dealer needs to File.
However, the following persons are ineligible to opt GST composition scheme:
Under the normal provisions of the GST law, a registered taxable person is required to file 3-4 monthly returns. In order to reduce the tax compliance for the small taxpayers GST composition scheme was introduced, under this scheme, a composition taxable person is required to file GST returns once every quarter. GSTR 4 is required to be filed by 18th of the month following the relevant quarter.
GST return can also be filled with the help of GSTR 4 offline tool based on excel worksheets. The offline GST tool is offered for simplifying GST returns filing for the GSTR 4 returns.
GSTR 4 has a 13 headings, a taxable person registered under the composition scheme is need not worry as most of these will be pre-filled. However, it’s important to understand certain terms:
1. GSTIN– Goods and Services Taxpayer Identification Number
2. UIN– Unique Identification Number
3. UQC– Unit Quantity Code
4. POS– Place of Supply of Goods and Services
5. B2B– Business to Business (one registered person to another registered person)
6. B2C– Business to Customer (registered person to unregistered person)
7. HSN– Harmonised System of Nomenclature
8. SAC– Services Accounting Code
GSTR 4 is required to be filed on a quarterly basis.
The due date for filing GSTR 4 is 18th of the month following the relevant the quarter.
|April to June 2018||18th July 2018|
|July to September 2018||18th October 2018|
|October to December 2018||18th January 2019*|
|January to March 2019||18th April 2019*|
* the due date for GST return filing is subject to change, as recommended in 27th GST council meeting.
Where a taxable fails to pay the taxes before the due dates, then the person is liable to pay interest at 18 % per year. The interest is to be calculated taking the number of days the taxpayer missed out.
What are the advantages of GST Composition Scheme?
The following are the advantages composition scheme: