How to file Annual Return For Composition
How to file Annual Return For Composition GSTR-4 is a yearly return required to be submitted by taxpayers who have chosen the composition scheme. How to file Annual Return For Composition It summarizes a taxpayer’s quarterly sales, purchases, and tax payments reported through CMP-08, along with any additional disclosures for the financial year.
Who should File Form GSTR-4
All taxpayers registered under GST who have opted for the composition scheme at any point during the financial year are required to file Form GSTR-4, the annual return. How to file Annual Return For Composition This applies to those who initially chose How to file Annual Return For Composition the composition scheme during GST registration and have remained opted-in throughout the year, as well as those who joined the scheme at the beginning of the financial year but later opted out.
Eligibility and Rules for Filing Form GSTR-4:
- Designed for taxpayers opting for composition schemes under GST, including small businesses, manufacturers, and restaurant owners.
- Turnover limit varies by state: up to INR 1.5 Crore for certain states and INR 75 Lakh for special category states.
- Eligible businesses include manufacturers, traders, and non-alcohol-serving restaurants. Service providers with turnover up to INR 50 Lakh can also opt in.
Filing Rules:
- Required to be filed annually by April 30th following the end of the financial year, starting from the F.Y. 2023-2024.
- Quarterly GST payments through CMP-08 due by the 18th of the month following the quarter end.
- No Input Tax Credit (ITC) can be claimed by composition taxpayers.
- Limited to making taxable supplies within the state or interstate supplies of handicraft goods (with conditions), excluding non-taxable goods or goods through e-commerce operators.
- ‘Bill of Supply’ issued instead of tax invoices for sales.
- Restrictions on interstate sales for composition dealers.
- Amendments can be made in subsequent financial year returns.
Steps in Filing Form GSTR-4:
- Log in to the GST Portal:
- Access the GST portal using your login credentials at https://www.gst.gov.in/.
- Navigate to Form GSTR-4:
- From the ‘Services’ menu, select ‘Returns’ and then choose ‘Annual Return’. Locate GSTR-4 for the composition scheme and click on ‘Prepare Online’.
- Enter Financial Year Details:
- Provide the financial year details for the return preparation. Click ‘Search’ and then select ‘Prepare Online’ to proceed.
- Fill in the Form Details:
- Complete all required fields according to the specified format.
- Provide Outward and Inward Supplies Details:
- Enter details of outward and inward supplies for the financial year, including reverse charge transactions.
- Pay Taxes and Interest:
- If applicable, calculate taxes and interest using the ‘Payment of Tax’ tab. Make payments using cash and credit ledgers.
- Preview the Draft Form GSTR-4:
- Review the draft Form GSTR-4 to ensure accuracy before submission.
- Submit the GSTR-4:
- After verifying details, submit Form GSTR-4. Authenticate the submission using a Digital Signature Certificate (DSC) or an Electronic Verification Code (EVC), depending on the business type.
- Acknowledgement:
- Upon successful submission, receive an acknowledgement message.
Difference between Form GSTR-4 and CMP-08:
| Aspect | Form GSTR-4 | CMP-08 |
| Filing Frequency | Filed annually | Filed quarterly |
| Purpose | Annual return consolidating quarterly | Quarterly statement of self-assessed tax |
| Content | Summarises yearly sales, purchases, | Details tax paid under composition scheme |
| and tax payments | for the quarter | |
| Tax Payments | No tax payments required | Tax payments required quarterly |
| Input Tax Credit | Not eligible for Input Tax Credit (ITC) | Not eligible for ITC |
| Filing Deadline | By April 30th following the financial | By the 18th of the month succeeding the |
| year end | quarter end | |
| Mode of Filing | Online | Online |
The table illustrates the key differences between Form GSTR-4 and CMP-08 in terms of filing frequency, purpose, content, tax payments, eligibility for Input Tax Credit (ITC), filing deadlines, and mode of filing.
Conclusion:-
In conclusion, Form GSTR-4 and CMP-08 serve distinct purposes within the GST framework. Form GSTR-4 is an annual return filed by composition scheme taxpayers, consolidating quarterly sales, purchases, and tax payments. It is filed annually, does not involve tax payments, and composition scheme taxpayers are not eligible for Input Tax Credit (ITC). How to file Annual Return For Composition On the other hand, CMP-08 is a quarterly statement of self-assessed tax payments filed by composition scheme taxpayers. How to file Annual Return For Composition It requires quarterly tax payments and does not allow for ITC. Understanding these differences is crucial for compliance with GST regulations. If you have more any query please visit our website www.taxgyany.com
Sources :https://cleartax.in/s/gstr4-composition-dealer-gst-return
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