Last updated: December 17th, 2024 3:13 PM

GST Return Filing - Composition Scheme

The GST Composition Scheme is designed to ease the compliance burden for MSME businesses by simplifying GST return filings and GST payment mechanisms. In this article, we look at the GST return filing for Composition Scheme in detail.

Composition Scheme Return Filing

All persons registered under the Composition Scheme shall file FORM GSTR-4A every quarter through the GST Common Portal or through a GST Facilitation Centre. GST return for those enrolled under Composition Scheme is due on the 18th of the month, succeeding a quarter. Hence, GST return for composition scheme would be due on April 18th, July 18th, October 18th and January 18th. The GST return filed by a Composition Scheme supplier must include details of:

• Invoice-wise inter-State and intra-State inward supplies received from registered and unregistered persons.
• Consolidated details of outward supplies made.

Also, if a registered person opted to pay tax under composition scheme from the beginning of a financial year, then the taxpayer must file monthly GST returns on the 10th, 15th and 20th of each month and monthly returns till the due date of furnishing the return for the month of September of the succeeding financial year or furnishing of annual return of the preceding financial year, whichever is earlier. Hence, even if a taxable person under GST opted for composition scheme from April onwards, the taxpayer must continue filing monthly GST returns until September. Know more about due dates for filing of GST returns.

Composition Scheme - GST Payment Due Date

While filing the GST composition return, the taxpayer is also required to discharge liability towards tax, interest, penalty, fees or any other amount payable under GST by debiting the electronic cash ledger. GST composition is levied at the following rates:

• Manufacturers, other than manufacturers of such goods as may be notified by the Government - 1%.
• Suppliers making supplies - 2.5%
• Any other supplier eligible for composition levy - 0.5%

It is important to note that any taxpayer who has opted for the GST composition scheme will not be eligible to avail input tax credit on receipt of invoices or debit notes from the supplier for the period prior to opting for the composition scheme.

Withdrawing from GST Composition Scheme

Any taxpayer who is withdrawing from a GST Composition scheme must file FORM GST CMP-04 within seven days of the occurrence of event mandating withdrawal from GST composition scheme. Further, after filing the application for withdrawal from GST composition scheme, the taxpayer must file GST returns till the due date of furnishing the return for the quarter ending September of the succeeding financial year or furnishing of annual return of the preceding financial year, whichever is earlier. Simplify the GST registration & GST return filing process with IndiaFilings experts!