GST quarterly returns: Composition scheme dealers need not file purchase details
19/10/2018
new delhi: The Finance Ministry clarified that composition dealers under the Goods and Services Tax (GST) regime need not file details of purchases made from their vendors at the time of filing quarterly return GSTR-4.
In a clarification, the ministry said there have been doubts regarding the manner of filing the quarterly return by composition dealers in Form GSTR-4 in the absence of auto-population of the details of inward supplies received from registered suppliers.
“It has been brought to notice that doubts regarding the manner of filing the quarterly return by Composition Dealers in FORM GSTR-4 in the absence of auto-population of the details of inward supplies (other than supplies attracting reverse charge) received from registered suppliers exist amongst taxpayers,” the ministry said in a statement.
“In this regard, it is to clarify that the taxpayers who have opted to pay tax under the composition levy shall not furnish the data in serial number 4A of Table 4 of Form GSTR-4,” the statement said.
Serial number 4A of Table 4 of Form GSTR-4 gives details of purchases made from GST registered vendors. Over 18 lakh businesses opted for composition scheme, which allows them to pay taxes at a concessional rate and makes compliance easy under GST which was implemented from July 1, 2017.
Under the composition scheme, businesses with annual turnover of up to Rs 1 crore can opt for the scheme. Traders and manufacturers under the composition scheme are allowed to pay taxes at a reduced rate of 1 per cent, while restaurants are required to pay tax at 5 per cent rate. The last date for filing GST returns for the July-September quarter for such dealers is October 18.
“This clarification would help address the ambiguities which some of the composition dealers had on this disclosure requirement; specifically in the light of the auto-population facility not being available,” EY Tax Partner Abhishek Jain said.
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