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Returns under GST composition scheme | LogiTax
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Returns under GST composition scheme

19-12-2023
GST
Mrudula Joshi

What is Composition scheme in GST?

GST Composition Scheme is an easy mechanism for small taxpayers. The taxpayers can find escape from tedious GST formalities and pay GST at a fixed rate on turnover. This scheme can be opted by any taxpayer whose turnover is less than Rs. 1.5 crore.

To know more about composition scheme, read on.

Which returns are required to be filed by a composition dealer?

A composition dealer is required to file below returns:

  • Form CMP-08 on a quarterly basis in a challan-cum-statement,
  • Annual return in Form GSTR-4.

CMP-08

What is Form CMP- 08?

Form GST CMP-08 is used to declare the details or summary of self-assessed tax which is payable for a given quarter by taxpayers who are registered as composition taxable person or taxpayer who have opted for composition levy.

What is the periodicity and due date for CMP 08?

Form GST CMP-08 is to be filed on quarterly basis. The due date for filing Form GST CMP-08 is 18th of the month succeeding the quarter. Even if there is no tax liability in any quarter, nil CMP-08 has to be filed.

How to file CMP-08 on portal?

  • Go to www.gst.gov.in and login.
  • Click the Services > Returns > Returns Dashboard command.
  • The File Returns page is displayed. Select the Financial Year & Return Filing Period (Quarter) for which you want to file the statement from the drop-down list and click “SEARCH”.
  • The File Returns page is displayed. In the GST CMP-08 tile, click the PREPARE ONLINE button.
  • The Statement for payment of self-assessed tax is displayed.
  • Fill the required details, save, preview and proceed to file.
  • Refresh the screen after sometime and Payment of Tax page is displayed. Available cash balance as on date in Electronic Cash Ledger is shown to the taxpayer in "Cash Ledger Balance" table.
  • If available cash balance in Electronic Cash Ledger is less than the amount required to offset the liabilities, then additional cash required to be paid by taxpayer is shown in the "Additional Cash Required" column. You may create challan for the additional cash directly by clicking on the CREATE CHALLAN button.
  • The Create Challan page is displayed.
  • Note: In the Tax Liability Details grid, the Total Challan Amount field and Total Challan Amount (In Words) fields are auto-populated with total amount of payment to be made. You cannot edit this amount.
  • Pay the challan and offset liability. Then file the return.
  • In case of Nil GST CMP-08, select the check box for File Nil GST CMP-08. On enabling the checkbox, the following texts will be displayed:

GSTR 4:

Form GSTR-4 (Annual Return) is a yearly return to be filed once, for each financial year, by taxpayers who have opted for composition scheme during the financial year, for were in Composition scheme for any period during the said financial year, from 1st April, 2019 onwards. Such taxpayers are required to furnish details regarding summary of outward supplies, Inward supplies, import of services and supplies attracting reverse charge in this form.

How to file GSTR 4 on portal?

  • Go to www.gst.gov.in and login.
  • Click the Services > Returns > Annual Return option.
  • The File Annual Returns page is displayed. Select the Financial Year for which you want to file the annual return from the drop-down list. Click the SEARCH button.
  • The File Returns page is displayed. Please read the important message in the boxes carefully. In the Annual Return GSTR-4 tile, click the PREPARE ONLINE button.
    Note: PREPARE ONLINE button for filing Form GSTR-4 will be enabled only after filing all applicable Form CMP-08 statements for the relevant Financial Year.
  • The GSTR-4 Annual Return page is displayed. Enter the aggregate turnover of previous financial year and click SAVE.
    Note: You will not be able to proceed further without entering aggregate turnover of previous financial year. In case, you were registered during the current FY or had nil aggregate turnover, please enter '0' (Zero) here. On saving aggregate turnover details, other buttons on this screen will get enabled.

    Note: You can click the Help link to view Help related to this page.

    A confirmation message is displayed that Save request has been acknowledged.

  • To file Nil return: Nil Form GSTR-4 Annual Return can be filed by you, for the financial year, if you have, for all applicable quarters of the year
    NOT made any outward supply
    NOT received any goods/services
    Have NO other tax liability to report
    Have filed all Form CMP-08 as Nil
  • Select the File Nil GSTR4 check-box. Click PROCEED TO FILE.

    Return is ready to be filed. Click PROCEED TO FILE.

  • Click CONTINUE.
  • Payment of Tax

    Note:
    If there are any interest liability to be declared, the same can be declared in “Interest payable” column.
    If Nil Form GSTR-4 is not filed by the due date, GST Portal will calculate the late fee as per the prescribed law and show the same in “Late Fee Payable” column.
    “Additional Cash Required” column reflects the cash required to be paid through challan for payment of interest and late fee, after adjusting the amount available in Electronic Cash Ledger.
  • File Form GSTR-4 (Annual Return) with DSC/ EVC.

Table wise details:

Table 4A: Inward supplies received from a registered supplier (other than reverse charge)

In the Supplier GSTIN field, enter the GSTIN of the supplier. Once the GSTIN of the supplier is entered, Trade/Legal Name fields are auto-populated based on the GSTIN of the supplier.
Click the Add (+) button.

    Note :
  • You must provide all details related to one Supplier GSTIN tax rate wise here.
  • Inward supplies attracting reverse charge, are not to be provided in table 4A and the same are required be provided in table 4B.
  • Place of Supply of the recipient is shown as the State/UT in which the recipient is registered, by default and cannot be edited.

On clicking the Add (+) button, the Item Details fields get displayed. Enter the item details of the document and click the Add (+) button to add more rows. Once all the details are entered, click SAVE.

    Note :
  • You can enter negative values here to enter details related to Net of advances, credit and debit notes or any other adjustment due to amendments.
  • In case, supplies are received from a composition taxpayer, the tax rate should be selected as ‘0’ (Zero) from the Rate drop-down list.
  • The tax amounts are auto-calculated on the basis of values entered in Taxable Value and tax rate fields but are editable. The CESS amount has to be entered by the taxpayer manually.

Once the details are saved, a success message gets displayed. The details of the document are validated by the GST Portal and are added to the Pending Records table till the validation is completed. Post successful validation, the document gets added to the Processed records (Validated successfully) section of this page. You may refresh the page to see the most updated status of documents. In case, the documents are processed with error, it would be available in ‘Pending Records’ table with status as ‘Processed with error’. You may click edit to see the error and correct the same.

    Note :
  • To edit or delete the added details, click the Edit/Delete icons under the Action column.
  • To search in the list of added records, enter the relevant text/value in the Search field.
  • To view records per page, select the required number of records from the Records Per Page drop-down list.
  • To download the added details in the CSV format, click the Download CSV link.

Note: Similarly, you can enter other details for the table.

Table 4B. Inward supplies from registered supplier (reverse charge)

In the Supplier GSTIN field, enter the GSTIN of the supplier. Once the GSTIN of the supplier is entered, Trade/Legal Name fields are auto-populated based on the GSTIN of the supplier. Click the Add (+) button.
Note: Inward supplies other than those attracting reverse charge, are not to be provided in table 4B and the same need be provided in table 4A

On clicking the Add (+) button, the Item Details fields get displayed. Enter the item details of the document and click the Add (+) button to add more rows. Once all the details are entered, click SAVE.

    Note :
  • You can enter negative values here to enter details related to Net of advances, credit and debit notes or any other adjustment due to amendments.
  • The tax amounts are auto-calculated on the basis of values entered in Taxable Value and tax rate fields but are editable. The CESS amount has to be entered by the taxpayer manually.

Once the details are saved, a success message gets displayed. The details of the document are validated by the GST Portal and are added to the Pending Records table till the validation is completed. Post successful validation, the document gets added to the Processed records (Validated successfully) section of this page. You may refresh the page to see the most updated status of documents. In case, the documents are processed with error, it would be available in ‘Pending Records’ table with status as ‘Processed with error’. You may click edit to see the error and correct the same.

    Note :
  • To edit or delete the added details, click the Edit/Delete icons under the Action column.
  • To search in the list of added records, enter the relevant text/value in the Search field.
  • To view records per page, select the required number of records from the Records Per Page drop-down list.
  • To download the added details in the CSV format, click the Download CSV link.

Note: Similarly, you can enter other details for the table.

4C. Inward supplies from unregistered supplier

Select the checkbox for Reverse Charge, if applicable. In the Supplier PAN field enter the PAN of the supplier, if any. Enter the Trade/Legal Name of the supplier. In case of supplies liable to reverse charge, select the Supply Type from the drop-down list. Click the Add (+) button.
Note: The record can also be added without providing the PAN details, if same is not available

On clicking the Add (+) button, the Item Details fields get displayed. Enter the item details of the document and click the Add (+) button to add more rows. Once all the details are entered, click SAVE.

    Note :
  • You can enter negative values here to enter details related to Net of advances, credit and debit notes or any other adjustment due to amendments.
  • The tax amounts are auto-calculated on the basis of values entered in Taxable Value and tax rate fields but are editable. The CESS amount has to be entered by the taxpayer manually.

Once the details are saved, a success message gets displayed. The details of the document are validated by the GST Portal and are added to the Pending Records table till the validation is completed. Post successful validation, the document gets added to the Processed records (Validated successfully) section of this page. You may refresh the page to see the most updated status of documents. In case, the documents are processed with error, it would be available in ‘Pending Records’ table with status as ‘Processed with error’. You may click edit to see the error and correct the same.

    Note :
  • To edit or delete the added details, click the Edit/Delete icons under the Action column.
  • To search in the list of added records, enter the relevant text/value in the Search field.
  • To view records per page, select the required number of records from the Records Per Page drop-down list.
  • To download the added details in the CSV format, click the Download CSV link.

Note: Similarly, you can enter other details for the table.

4D. Import of service

Click the Add (+) button.
Note: Place of Supply of the recipient is shown as the State/UT in which the recipient is registered, by default and cannot be edited.

On clicking the Add (+) button, the Item Details fields get displayed. Enter the item details of the document and click the Add (+) button to add more rows. Once all the details are entered, click SAVE.

    Note :
  • You can enter negative values here to enter details related to Net of advances, credit and debit notes or any other adjustment due to amendments.
  • The tax amounts are auto-calculated on the basis of values entered in Taxable Value and tax rate fields but are editable. The CESS amount has to be entered by the taxpayer manually.

Once the details are saved, a success message gets displayed. The details of the document are validated by the GST Portal and are added to the Pending Records table till the validation is completed. Post successful validation, the document gets added to the Processed records (Validated successfully) section of this page. You may refresh the page to see the most updated status of documents. In case, the documents are processed with error, it would be available in ‘Pending Records’ table with status as ‘Processed with error’. You may click edit to see the error and correct the same.

    Note :
  • To edit or delete the added details, click the Edit/Delete icons under the Action column.
  • To search in the list of added records, enter the relevant text/value in the Search field.
  • To view records per page, select the required number of records from the Records Per Page drop-down list.
  • To download the added details in the CSV format, click the Download CSV link.

Summary of CMP-08

To view auto-drafted details, as provided in filed Form CMP-08 for the financial year, select 5. Summary of CMP-08 from the "Select tables to add/view details" drop-down list.
Note: Summary of self-assessed liability is auto-populated in Table-5 of GSTR-4 Annual Return on basis of filed Form CMP-08 & is non-editable.

Tax rate wise inward supplies attracting reverse charge and outward supplies
There are two separate tabs for Outward Supplies and Inward Supplies.
Enter the details and click SAVE.

    Note :
  • You can enter negative values here to enter details related to Net of advances, credit and debit notes or any other adjustment due to amendments.
  • You can declare your outward supplies in the user input cells in row 12 -16. Once you click on ‘Proceed to file’ button, Table 4B, 4C and 4D data will be auto-populated in Table 6 with inward supplies attracting reverse charge (rate wise) in row 1-11.

TDS/TCS credit received

  • Amount of TDS and TCS are auto-drafted based on the Returns/ Statements filed by TDS and TCS taxpayers. The values in Table 7, TDS and TCS credit received will be populated based on the amount accepted and credited to Electronic cash ledger during that financial year.
  • Details provided in Table 7 cannot be edited.

Preview GSTR-4

Click on the BACK button to navigate to the Form GSTR-4 form. Click the Compute Liabilities button and further click the Refresh button after a few minutes.

Note: Click the Refresh button. The Compute Liabilities button disappears and the Proceed to File button appears.

The Compute Liabilities button disappears and the Proceed to File button appears. The Ready to file message is displayed.

Click the DOWNLOAD GSTR-4 SUMMARY (PDF)/ DOWNLOAD GSTR-4 (EXCEL) button to download the Form GSTR-4 (Annual Return) summary in PDF or the Excel format. This button will download the draft Summary page of your Form GSTR-4 (Annual Return) for your review. It is recommended that you download this Summary page and review the summary of entries made in different sections before filing Form GSTR-4 (Annual Return).

Conclusion :

The GST Composition Scheme streamlines tax procedures for small businesses with a turnover under Rs. 1.5 crore. Composition dealers file Form CMP-08 quarterly, declaring self-assessed tax details, and an annual return in Form GSTR-4. The process involves navigating the GST portal, entering specific details for various transaction types, and ensuring compliance with deadlines. Opting for this scheme offers simplicity, but adherence to filing requirements is crucial for a smooth GST journey.

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