GST return filing: GSTR-4

Provisions are being made in the GST to encompass all the persons who are liable to pay the tax. In the GST Return-4, all the people who have come out of the threshold exemption limit can select the compounding scheme for payment of taxes. Here the tax rate is fixed and no input tax credit (ITC) is available. The person is known as the compounding dealer and is required to file his return in the GSTR-4 on a quarterly basis. The return is to be furnished by the 18th of the month succeeding the quarter. Let us take a look at the various entries in this form.

GSTR -4 : Quarterly Return for Compounding Dealer

Inward supplies: After the initial details related to the taxpayer, the form asks for the inward supplies taxation details. In case the supplier is paying the GST the invoice details along with the taxes paid are auto-populated from the counterpart GSTR-1. The compounding dealer has the option to punch in the entry in case it is not auto-populated. The supplies that are coming from unregistered dealers will be bifurcated into two parts. If it is a GST paid supply the details get auto-populated or can be entered by the compounding dealer. The non-tax paid supplies from unregistered suppliers are required to be entered on payment of GST on reverse charge basis.

Imports and exports: All the details related to goods and supplies purchased from outside the country are also to be mentioned in the separate tables in the GSTR-4 form. Similarly, the compounding dealers are allowed to make exports provided they give the outward supply details in the returns form.

Outward supplies: The sales or all outward supplies whether they are intra-state or made to the non-GST suppliers are tabled next. The form is very simple and the taxpayer is required to indicate the total value of the supplies made during the return period. The taxes paid at the compounding rate have also to be mentioned. The entries for interest paid, penalty, and late fee are also captured in the GSTR-4 form. Thus, all statutory liabilities are indicated and there is also a provision for capturing the debit entry number of the cash ledger.

Before the form ends the taxpayer must indicate if there is a possibility of crossing the composition limit before the date of the tax return.

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