Finance Ministry clarifies on return filing by composition dealers in Form GSTR-4

The ministry said traders who have opted for composition scheme need not file certain details in return form since the reverse charge mechanism in not yet functional.

Finance Ministry clarifies on return filing by composition dealers in Form GSTR-4

New Delhi: The finance ministry has clarified doubts on the manner of filing the quarterly return by composition dealers in Form GSTR-4.

The ministry said traders who have opted for composition scheme need not file certain details in return form since the reverse charge mechanism in not yet functional.

The GST Council, headed by Finance Minister Arun Jaitley and comprising state counterparts, has kept the reverse charge mechanism in abeyance till June.

The ministry, in a statement said, for the tax periods July, 2017 to September, 2017 and October, 2017 to December, 2017, serial 4A of Table 4 shall not be furnished.

"Since auto-population of the details of the inward supplies, including supplies on which tax is to be paid on reverse charge is not taking place, 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 for the tax periods January, 2018 to March, 2018 and subsequent tax periods," it said.

Businesses with turnover of up to Rs one crore can opt for composition scheme under the Goods and Services Tax (GST) which was rolled out from July 1, 2017.

The scheme allows taxpayers to pay GST at a fixed rate of turnover and not to go through the tedious GST formalities.

Under the reverse charge mechanism, registered dealers are required to make tax payments in case he procures goods from unregistered businesses.

With PTI Inputs

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