GST Return Filing Composition Scheme

Under the Goods and Services Tax (GST) regime in India, businesses with a turnover of up to Rs. 1.5 crores (or Rs. 75 lakhs in some states) can opt for the Composition Scheme. This scheme allows them to pay tax at a fixed rate of turnover and file quarterly GST returns instead of monthly returns.

The GST Return Filing Composition Scheme requires taxpayers to file a quarterly return in Form GSTR-4 by the 18th day of the month following the quarter, instead of the monthly returns filed by regular taxpayers. This return contains details of the supplies made during the quarter, tax paid, and details of any tax liability.

The following are some key features of the GST Return Filing Composition Scheme:

Rate of tax: The rate of tax for taxpayers under the Composition Scheme varies depending on the type of business. For example, for manufacturers and traders, it is 1% of the turnover, while for restaurants it is 5% of the turnover.

Quarterly returns: Taxpayers under the Composition Scheme are required to file quarterly returns in Form GSTR-4, instead of monthly returns. The due date for filing this return is the 18th day of the month following the quarter.

Simplified invoices: Taxpayers under the Composition Scheme are not required to issue detailed invoices for their supplies. They can issue a bill of supply instead, which contains fewer details than a regular invoice.

Input tax credit: Taxpayers under the Composition Scheme are not allowed to claim input tax credit on the taxes paid on their purchases. This means that they cannot reduce their tax liability by the taxes paid on their purchases.

Limited threshold: Taxpayers under the Composition Scheme have a limited threshold of Rs. 50 lakhs for inter-state supplies, and are not allowed to engage in exports.

It is important for taxpayers to ensure compliance with the GST regulations and to file their returns on time. Non-compliance may lead to penalties and additional compliance requirements. It is recommended that taxpayers seek professional assistance to ensure compliance with the GST regulations.

Documents Required:

• GST Registration Certificate

• GST user Id and Password

• Registered Mobile no

• Registered Email Id

• Submitted application form GSTIN portal process for Regular Taxpayers