Is it mandatory to furnish inward details in GSTR 4?
Click here for FY 2019-20 – Is it mandatory to furnish details of inward supplies in GSTR 4(Annual Return)?
Note: Thie exemption details discussed in this article were provided by CBIC for GSTR 4(quarterly return) which was applicable for FY 17-18 & FY 18-19.
Overview of GSTR 4
GSTR 4 is the quarterly return to be filed by a taxpayer who has opted for a composition levy under the GST regime. Generally, the due date to furnish the details in Form GSTR 4 is on or before18th of the month succeeding quarter.
Note: There is no provision to revise the quarterly return GSTR 4 filed by the composition taxpayer. If any amendments are required then that is to be done in the next quarter’s return.
Details relating to outward supplies, inward supplies, taxes paid interest, late fees etc. need to be furnished in Form GSTR 4.
What is the practical problem being faced by taxpayers while filing GSTR 4?
In cases where GSTR 1(regular taxpayer) & GSTR 5 (NRI taxpayer) are not filed by the respective taxpayers (suppliers), the details of inwards supplies i.e the purchases will not auto-populate in table 4A of GSTR 4.
Due to some technical glitches on the portal, the details of inwards supplies i.e the purchases are not correctly reflected in table 4A of GSTR 4 even after auto-population on account of returns were furnished by the taxpayers(seller).
This is making it a very lengthy, time-consuming and tedious task for the composition taxpayers to collate and manually fill the details of inward supplies for the quarter in Table 4A, 4B, 4C and 4D of GSTR 4.
Is it mandatory to furnish the inward supplies details in GSTR 4?
- Invoice-wise details of inward supplies relating to both intra-state & interstate from registered and unregistered persons separately.
As per the instructions given below FORM GSTR-4 of CGST Rules, 2017 (Part B_Forms), the following information relating to inward supplies (rate-wise) needs to be provided
- Table 4A – Information will auto-populate relating to inward supplies from a registered supplier other than supplies where the reverse charge is applicable from the returns furnished by the suppliers in GSTR-1 and GSTR-5.
- Table 4B – Information will auto-populate relating to supplies from a registered supplier where the reverse charge is attracted from the returns furnished by the suppliers in GSTR-1.
- Table 4C – Information will auto-populate relating to inward supplies from an unregistered supplier.
- Table 4D – Information relating to the import of services.
What is the relief provided by the Government in this regard?
It was brought to the notice of the Government that in absence of auto-population of the details of inward supplies (other than supplies attracting reverse charge) received from registered suppliers, Composition taxpayers were having trouble and had doubts regarding the manner of filing the quarterly return FORM GSTR-4.
To clarify this doubt, the Finance Ministry issued a press release on 17th October 2018 stating that the taxpayers who have opted to pay tax under the composition levy shall not furnish the data of inward supplies from a registered dealer in Table 4A of Form GSTR – 4.
The government has also issued a CGST notification no. 60/2018 dated 30th October 2018 for the same & made an amendment (Thirteenth Amendment, 2018) in the CGST Rules, 2017.
The above clarification has addressed the ambiguities which the composition dealers had regarding the disclosure requirement specifically relating to inward supplies when the auto-population feature which was available on GST portal was not working. Reporting in table 4A of GSTR-4 is not mandatory.
Note: Only the details of inward supplies from a registered supplier(Table 4A) are not mandatory, but details of all other inward supplies like supplies attracting reverse charge (Table 4B), supplies from an unregistered supplier (Table 4C) and supplies relating to import of services (Table 4D) are to be furnished while furnishing the quarterly return.
Following references are used to compile the above article
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- Is it mandatory to furnish inward details in GSTR 4(Annual Return) applicable for FY 2019-20?
- A press release that exempted composition taxpayer to furnish the details of inward supplies in GSTR-4 for FY 2017-18 & FY 2018-19
- Why composition taxpayers are ignored?
- Due Dates of GSTR 4(Annual Return)
- Due Dates of GSTR 4(Quarterly Return)
- Form CMP 08 explained in detail
- Due dates of Form CMP 08
- Composition scheme for service providers as per Notification No. 02/2019– Central Tax (Rate), dated the 7th March 2019
- Procedure to opt for composition levy by a service provider as per CGST Circular No. 97/2019 dated 5th April 2019