Quarterly Return for Taxpayers under composition scheme :

After crossing the threshold exemption limit, the taxpayers may opt for composition scheme wherein they would be required to pay taxes at fixed rate on their turnover as per section 8 of the model law. Such taxpayers can neither avail ITC nor can their purchasers claim ITC on purchases made from them. Therefore a simpler return can be prescribed for such payers and they would be required to file a simplified quarterly return in the format GSTR-4.

In this return the taxpayer is only required to indicate the total value of supplies made during the period of return and the tax paid at the composition rate alongwith the details of payment of tax in the return. The composition taxpayer will also need to declare invoice-level purchase information for the purchases from normal taxpayers, which will be auto-drafted from supply invoice information uploaded by counter-party taxpayers. Suppliers making interstate supplies shall not be allowed composition benefit but composition taxpayers can receive interstate supplies.

The composition taxpayers will also be required to submit details of the goods and services imported from outside India. The composition taxpayers would be allowed to export supplies outside India. Composition taxpayers shall normally make purchases from registered taxpayers but if they make any purchase from unregistered taxpayers, it shall attract tax on reverse charge. As per section 27 (1) of the draft model bill, the return for composition taxpayers shall have to be filed for every quarter on 18th of the month after the end of the quarter.