With the intention to reduce compliance burden, the CBIC has notified the simplified ‘statement for payment of self-assessed tax‘ in Form GST CMP08, to be furnished by composition taxpayers.
Relief with the seasoning of benefits and simplification has been provided by the finance ministry to composition scheme taxpayers under the GST, permitting such businesses to file ‘self-assessed tax’ return on a quarterly basis in a simplified form, under which businesses have to pay a lower rate of tax on their turnover.
The form CMP08 will have to be filed by 18th of the subsequent month following the termination of a quarter. The details like outward supplies, inward supplies attracting reverse charge including import of services, tax, interest payable and taxes and interest paid will be furnished in the same. Heretofore the small taxpayers who opted for composition scheme were bound to file form GSTR-4 every quarter which accomplishes in around seven pages.
Now, the latest notification by CBIC liberates composition scheme taxpayers to file GSTR-4 annually by 30 April for the previous F.Y. ending 31 March. Similarly, the Composition scheme businesses will file the April-June quarter returns in July, following the new format.
A tax expert appreciates the notification and believes that the annual filing on returns will relieve the composition taxpayer from the onus of furnishing a huge and bulky return on a quarterly basis.
“For the purposes of tax payment composition taxpayer would now be filing a simplified quarterly statement for payment of self-assessment tax. This initiative of government would act as an incentive for small and upcoming businesses to accept the composition scheme without any fear of compliance,” the expert added.
Among the total of 1.21 crore businesses registered under Goods and Services Tax (GST), 20 lakh comes under composition scheme. Businesses not registered under composition scheme have to file monthly GST returns and pay taxes under the four GST slabs, which are 5, 12, 18 and 28 %, on the basis of goods and services they deal in. While under the composition scheme, small traders and manufacturers with a turnover of Rs 1.5 crore pay a 1% GST and the service providers and suppliers of both goods and services up to a turnover of Rs 50 lakh pay 6%.
