The Finance Ministry has officially announced that the business enterprises who have chosen the composition scheme under Good and Services Tax (GST) Regime now don’t require to provide the information of goods purchased from their vendors while filing quarterly return GSTR-4 Form.
While discussing the problems, the ministry stated that have been some issues faced by the composition dealers while filing the quarterly returns in Form GSTR-4 in the absence of auto-population of the details of inward supplies received from registered suppliers.
“In this regard, it is to clarify that the 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,” said Finance Ministry.
Serial number 4A of Table 4 of Form GSTR-4 includes the information purchases from GST registered vendors.
As many as 18 lakh business enterprises have opted the composition scheme under the indirect tax regime. Under composition scheme, businesses are entitled to file returns at a concessional rate and it’s easier for them to follow the compliance of Good and Services Tax (GST) which came into existence on 1st July 2017. Businesses enterprises whose annual turnover is up to Rs 1 crore can avail the composition scheme.
The deadline for filing GST returns for the quarter of July-September (businesses who opted composition scheme) is 18th October.
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Abhishek Jain, Tax Partner of Ernst & Young (E&Y) stated, “This clarification would help address the ambiguities which some of the composition dealers had on this disclosure requirement; specifically in the light of the auto-population facility not being available,”.
