Composite Scheme Traders need not file all return details

Ministry of Finance stated that the traders opting for composition scheme need not file certain details in the return form since the reverse charge mechanism is not yet functional. The GST Council has kept the reverse charge mechanism in abeyance till June.

“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,” in a statement by the MoF.

Businesses with turnover of up to Rs 10 million can opt for composition scheme under the Goods and Services Tax (GST) which was rolled out from July 1, 2017.

Under the reverse charge mechanism, registered dealers are required to make tax payments in case he procures goods from unregistered businesses.