After crossing the threshold exemption limit, the taxpayers may opt for composition levy wherein they would be required to pay taxes at fixed rate on their turnover as per section 10 of the CGST Act, 2017 which is applicable to IGST/UTGST Acts and SGST law mutatis mutandis. Such taxpayers can neither avail ITC nor can their purchasers claim ITC on purchases made from them. Therefore a simpler return is prescribed f or such taxpayers and they would be required to file a simplified quarterly return in the format GSTR-4.
GSTR 4 shall be prepared after adding, correcting or deleting the details in Form GSTR-4A.
The return GSTR 4 shall include, inter alia
• invoice wise inter-State and intra-State inward supplies received from registered and un-registered persons;
• import of goods and services made;
• consolidated details of outward supplies made; and
• debit and credit notes issued and received, if any.
In this return the taxpayer is only required to indicate the total value of supplies made during the period of return and the tax paid at the composition rate along with the details of payment of tax in the return. The composition taxpayer will also need to declare invoice-level purchase information for the purchases from normal taxpayers, which will be auto-drafted from supply invoice information uploaded by counter-party taxpayers. Suppliers making inter-state supplies shall not be allowed to avail the composition benefit but composition taxpayers can receive inter-state supplies.
The composition taxpayers will also be required to submit details of the goods and services imported from outside India. The composition taxpayers would be allowed to export supplies outside India. Composition taxpayers shall normally make purchases from registered taxpayers but if they make any purchase from unregistered taxpayers, it shall attract tax on reverse charge basis. As per section 39(2) of the CGST Act, 2017 which will be applicable to UTGST/IGST Acts, and SGST law, the return for composition taxpayers shall have to be filed for every quarter on 1 8th of the month after the end of the quarter.