ClearTax Guide on Filing GSTR-4 on GST Portal

Return Filing by Composition Dealer – GSTR-4

It is expected that 8 million business will get registered under the upcoming GST regime. Administration of such a large volume of taxpayers is going to be a tedious task for the government. To reduce such hassles, the government has introduced composition scheme. Under this scheme registered taxable person is required to furnish only one return on a quarterly basis. Read more on composition dealer here.

Below we have explained all the information that a composition dealer is required to furnish in his quarterly GSTR-4 return:

• GSTIN – Each taxpayer will be allotted a state-wise PAN-based 15-digit Goods and Services Taxpayer Identification Number (GSTIN). A format of proposed GSTIN has been shown in the image below. GSTIN of the taxpayer will be auto-populated at the time of return filing.

  

• Name of the Taxable Person –  Name of the taxpayer, will also be auto-populated at the time of logging into the common GST Portal.

• Address – Business address of the composition dealer will get auto-populated here.

• Period of Return (From and To) – A Taxable person is required to select from a drop down the relevant month and year respectively for which GSTR-3 is being filed.

• Inward Supplies including supplies received from unregistered persons – All inward supplies to a composition dealer will get auto-populated here. Inward supplies from an unregistered person are required to be furnished manually. Inward supply will also include supply under reverse charge mechanism.

• Amendments to detail of inward supplies –  Any change in the details of inward supply for earlier tax period can be made here. These supplies will also include supply from the unregistered person or composition dealer.

• Goods / Capital goods received from Overseas (Import of Goods) – Import of input goods or capital goods by a composition dealer must be reported under this head.

• Amendments in Goods / Capital goods received from Overseas (Import of Goods) – Any change in the details of import of input goods or capital goods from earlier tax period can be made here.

• Services received from a supplier located outside India (Import of Services) –  Import of input services from a person located outside India by a composition dealer must be reported under this head.

• Amendments in services received from a supplier located outside India –  Any change in the details of import of services from earlier tax period can be made here.

• Outward Supplies Made – Composition dealer is required to report details of all outward supplies under this head. These supply will include intra-state and Non-GST Supplies.

• Amendments to outward supplies related to intra-state supplies –  Any kind of amendment in outward supply from earlier tax period can be made here. This will also affect the tax liability of composition dealer.

• Details of Credit/Debit Notes issued and received – All debit/credit notes raised by the composition dealer must be reported under this heading. Needless to say, Counter-party debit note will result in composition dealer’s credit note and vice versa.

• Amendment to Details of Credit/Debit Notes  – Further in case any amendment is made with respect to debit/credit notes issued in the earlier tax period in current month needs to be reported under this head.

• TDS Credit received – Here Composition dealer will receive the credit of all TDS that was deducted during the current period. This information will flow from counter-party GSTR-7.

• Tax Liability under reverse charge arising on account of the time of supply without receipt of Invoice – GST liability under reverse charge as a result of charge due to the time of supply falls under current tax period needs to be reported under this head.

• Amendment in Tax Liability under Reverse Charge arising on account of the time of Supply without receipt of Invoice.

• Tax already paid on account of the time of supply for invoices received in the current period relating to reverse the charge.

• Liability Payable – GST liability of the composition dealer will get auto-populated here on the basis of all the information that has been furnished above.

• Details of Tax Payment – Tax liability under the previous head needs to be paid by way of debiting Electronic Credit Ledger or Electronic Cash Ledger. Details of such debit will be maintained under this head.

• Refund Claimed – In case the tax liability of composition dealer is less than the TDS deducted, he will get a refund of balance amount. Such amount which is available for refund will get auto-populated under this head.

• Are you likely to cross composition limit before the date of next return: Y/N – GSTN will also ensure that in case a dealer exceeds the threshold limit, he must pay taxes under the normal provision. Such declaration is obtained under this heading from the composition dealer.

• Signature – Once all the above information is furnished, composition dealer is required to digitally sign his return. This can be done through Digital Signature Certificate (DSC) or Aadhar based verification.