GST Composition Scheme Returns

At JuroLegal, we make GST Quarterly Return filing simple, accurate, and stress-free for small and medium-sized businesses operating under the QRMP (Quarterly Return Monthly Payment) Scheme. Our experts assist you in preparing and filing GSTR-1 and GSTR-3B on a quarterly basis while ensuring monthly tax payments and input tax credit reconciliation are done correctly. We help you stay fully compliant with GST regulations by tracking due dates, verifying data accuracy, and ensuring smooth integration with your accounting records. Whether you’re an MSME or a growing enterprise eligible for quarterly filing, JuroLegal ensures timely submissions, error-free reporting, and complete peace of mind — helping you focus on your business while we handle your GST compliance professionally.

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  • The GST (Goods and Services Tax) Composition Scheme in India is designed to simplify tax compliance for small taxpayers. Businesses opting for the Composition Scheme enjoy lower compliance costs and simpler tax procedures. Here are the key aspects regarding returns under the GST Composition Scheme:

Key Features of the Composition Scheme

 

  1. Eligibility: Businesses with an annual turnover up to ₹1.5 crore (₹75 lakh for special category states) can opt for this scheme.
  2. Tax Rates: Fixed tax rates are applied:

   – Manufacturers and traders: 1%

   – Restaurants (not serving alcohol): 5%

   – Service providers: 6% (from FY 2019-20 onwards for those with turnover up to ₹50 lakhs)

– Limited to Intra-State Transactions: Cannot make inter-state supply of goods or services.

– No Input Tax Credit: Cannot claim the credit of the GST paid on inputs.

– Cannot Issue Tax Invoice: Cannot collect tax from customers.

To opt for the GST Composition Scheme, follow these steps:

  1. Eligibility Check:
    • Ensure that your aggregate turnover (including all supplies, exempt supplies, and exports) in the previous financial year does not exceed Rs. 1.5 crore.
    • If you meet this criterion, you’re eligible to apply for the composition scheme.
  2. Application Process:
    • Log in to the GST portal using your credentials.
    • Navigate to the Services tab and select Registration.
    • Click on Application for Composition Levy.
    • Fill in the required details, including your business name, PAN, and other relevant information.
    • Submit the application.
  3. Form GST CMP-02:
    • Once your application is approved, you’ll receive an intimation.
    • You need to file Form GST CMP-02 within 30 days from the date of the intimation.
    • In this form, you’ll provide details such as your business name, address, and the effective date of opting for the composition scheme.
  4. Invoice and Bill of Supply:
    • Under the composition scheme, you cannot issue regular GST invoices.
    • Instead, you’ll issue a Bill of Supply with the words “Composition Taxable Person” on it.
    • Mention the applicable composition tax rate on the bill.
    1. GSTR-4:

       – Frequency: Annually

       – Due Date: 30th April of the succeeding financial year

       – Details to be included:

         – Summary of outward supplies

         – Inward supplies (excluding those attracting reverse charge)

         – Consolidated details of outward supplies on a quarterly basis

     

    1. CMP-08:

       – Frequency: Quarterly

       – Due Date: 18th of the month succeeding the quarter (i.e., 18th April, 18th July, 18th October, and 18th January)

       – Details to be included:

         – Self-assessed tax amount for the quarter

         – Tax on outward supplies

         – Tax on inward supplies under reverse charge

     

     Steps to File CMP-08

     

    1. Login to the GST portal.
    2. Navigate to Services > Returns > Returns Dashboard.
    3. Select Financial Year and Return Filing Period.
    4. Click on ‘Prepare Online’ under CMP-08.
    5. Enter Details:

       – Summary of self-assessed tax

       – Tax on outward supplies and inward supplies under reverse charge

    1. Save the details.
    2. Submit the form.
    3. Make Payment through the available payment modes.
    4. File Return with DSC/EVC.

     

     Steps to File GSTR-4

     

    1. Login to the GST portal.
    2. Navigate to Services > Returns > Returns Dashboard.
    3. Select Financial Year.
    4. Click on ‘Prepare Online’ under GSTR-4 Annual Return.
    5. Fill Details:

       – Inward and outward supplies

       – Tax paid details

       – Other details required in the form

    1. Save and Submit.
    2. Make Payment if any liability arises.
    8. File Return with DSC/EVC.

– Simplified Compliance: Lesser compliance requirements compared to regular GST filers.

– Lower Tax Rates: Fixed tax rates are generally lower than standard GST rates.

– Quarterly Payment: Payment of taxes quarterly instead of monthly.

– Annual Return: Single annual return instead of multiple returns.

The Composition Scheme is ideal for small businesses seeking ease of compliance and lower tax rates, provided they meet the eligibility criteria and adhere to the scheme’s conditions. Timely filing of CMP-08 and GSTR-4 is essential to avoid penalties and ensure smooth operation under the GST regime.