The finance ministry has cleared the composition scheme dealers are not required to fill out some details in the form as there is no provision of reverse charge mechanism as of now.
As everyone knows that the reverse charge mechanism is still out of the working and this factor had let to the decision. The finance ministry has cleared that the decision has been taken after a lot of doubts and queries were coming regarding the filing manner of quarterly returns by composition dealers in the form GSTR 4.
The official state of the ministry stated that, “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.”
The said rule is applicable to all the composition scheme dealers who are required for the said scheme when their turnover comes at the threshold limit of one crore. The scheme further relaxes the taxpayer through going in the various complex GST compliance and filing tax at a fixed rate.
While the provision of reverse charge mechanism state that the registered business owner will have to pay the taxes if he had procured the goods from the non-registered businessman.
