GSTR 4 - Composition Scheme: Rules, Return Filing Procedures & Dates

GSTR 4 Common Problems

If you opted in/out of the GST Composition Scheme, you may facing several problems. Most of the problems are common to all taxpayers who opted in / out from the composition scheme. Let's check out those expected common problems with probable solutions of how to file GSTR 4.

Q: Obtained new registration and opted to pay tax under the Composition Scheme. How to file GSTR-4?

A: Download the GSTR-4 offline tool from the GST portal and fill it. Then upload the JSON file of the GSTR-4 offline tool in the portal.

Q: Do I need to enter details of the Purchase from the registered dealer in GSTR-4?

A: In GSTR-4, there must be a column (4A) to enter the details of purchases received from a registered dealer (other than supplies attracting reverse charge). But there is no 4A column in the GSTR 4 offline tool for July-sep quarter. Also in the 'Read me' section of the GSTR-4 offline tool it is clearly written that the 4A column is not applicable for quarters 2 & 3 (Jul-sep&oct-dec) period in FY 2017-18. Hence, according to the rule no scope to fill purchase details from the registered dealer in GSTR-4 for the July quarter.

Q: Who can file GSTR-4 for the Jul-Sep quarter?

A: The migrated taxpayers who have opted to pay tax under the composition return scheme by filing intimation in Form GST CMP-01 before 16 August 2017.

The taxpayers who have obtained new registration in the GST regime and opted to pay tax under the composition scheme while filing the application in Form GST REG-01.

Q: How to pay the tax?

A: Go to GST Portal> Services>  Payments> Create challan.

Q: Can I claim ITC?

A: ITC is not available to the composition taxpayers.

Q: What is the percentage of tax I need to pay?

A: Composition taxpayers need to pay tax on their quarterly aggregate turnover. The tax rate is,

2% for Manufacturers,

5% for Supplier of food and drinks for human consumption (without alcohol)

1% for Traders (others)

Q: Opted in Composition Scheme on 1st Oct, 2017. Do I need to file GSTR-4 for the Jul-Sep quarter?

A: Hope you already filed GSTR-3B for July, and Aug, Sept and GSTR 1&2 for Jul. So, you need not file GSTR-4 for the Jul-Sep quarter. Your return filing dashboard will be updated soon.

Q: Opted out from Composition Scheme on 1st Oct, 2017. Do I need to file GSTR-4 for the July-Sep quarter?

A: You were in Composition Scheme before 1st Oct and no collect any tax from customers. Hence you need to file GSTR-4 for the jul-sep quarter. Hope an official notification regarding this matter will come out soon.

Q: Opted in Composition Scheme on 1st Oct. But there is no option to file GSTR-1 & 2 for Aug & Sep? Even no previous return filing records are showing.

A: As you are now existing in the Composition Scheme, the Return filing dashboard is showing a quarterly basis. Also, no previous regular scheme records are showing as you are now in a composition scheme. Don't worry it's a common problem for all who opted in the composition scheme on 1st October. No last date till announced to file GSTR-1, 2 & 3 for August, and September. Your return filing dashboard will be updated soon.

Q: What is the last date to file GSTR-4 for July-Sep?

A: The Govt. announced that 24^th Dec. 2017 is the last date to file GSTR-4 for the Jul-Sep quarter.

Q: Opted into the Composition Scheme on 1st Oct, but the ITC balance is still showing in the Electronic credit ledger. Can I offset that ITC in the Oct-Dec quarter?

A: You can not avail of ITC in the Composition scheme. You may use the ITC at the time of filing GSTR-3 for Aug and Sep. Hope a new official notification will be available soon.

Q: Late fee waived for GSTR-3B of Jul, Aug & Sep. But no refund received?

A: A 'Refunds' tab has already been added to the portal. Hope it will be activated soon.

These are some common problems I found regarding GSTR-4 for the jul-sep quarter.

Disclaimer: The views expressed in this article are strictly personal. The content of this document are solely for informational purpose. It doesn’t constitute professional advice or recommendation. The Author does not accept any liabilities for any loss or damage of any kind arising out of information in this article and for any actions taken in reliance thereon.