Last updated on April 5th, 2021 at 11:06 pm
Why composition taxpayers are ignored?
Composition taxpayers constitute a large chunk of taxpayers in India under the GST regime. Considering the hardships faced by the Novel Coronavirus pandemic, CBIC has provided various relaxations to regular taxpayers ignoring the plight of composition taxpayers. In my opinion, hassles of filing return and making payment of tax would have been the same or rather more for composition taxpayers compared to the regular taxpayers. Composition taxpayers are amongst the smallest in terms of turnover, they are being taxed at the lowest of rates but why are they not being given all the privileges of due date extension, interest rate reduction or waiver or late fees waiver etc.
Ease of filing return
Regular taxpayers are given an option to furnish a NIL GSTR 1 through SMS.
Regular taxpayers are given an option to furnish a NIL GSTR 3B through SMS.
But a similar option to file NIL GST CMP 08 or NIL GSTR 4 is not given to composition taxpayers. Composition taxpayer ignored.
One time waiver/reduction of late fees for July 2017 to July 2020
Regular taxpayers are once again given a waiver/capping of late fees for furnishing GSTR 3B for the period starting from July 2017 to July 2020.
Regular taxpayers were also given a waiver of late fees for furnishing GSTR 1 for the period July 2017 to November 2019. Again a waiver of late fees was notified for the months of March, April, May & June 2020.
But a similar waiver or reduction in late fees is not given to composition to file GSTR 4(quarterly return) for FY 2017-18 & FY 2018-19. Composition taxpayer ignored.
Due date of filing return
Due dates for GSTR 3B was extended for the months of April-July 2020
Due dates for GSTR 1 was extended for the months of April-July 2020
But a similar extension in due dates for furnishing Form GST CMP 08 was not given to composition taxpayers. Composition taxpayer ignored.
Interest rate for tax
For regular taxpayers, the rate of interest applicable on payment of tax has been conditionally waived or reduced if payment of tax is done within the prescribed dates.
But a similar reduction or waiver in the rate of interest on payment of tax is not given to composition taxpayers. Composition taxpayer ignored.
Annual Return
Regular taxpayers are required to furnish only one annual return in the form GSTR 9 and if an audit is required then return for audit is GSTR 9C.
But composition taxpayer will be required to furnish two returns one is GSTR 4(Annual Return) and GSTR 9A. Composition taxpayer ignored.
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- 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
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- 50th GST Council Meeting - 11/07/2023
- GST Compliance Calendar of October 2023 - 01/04/2023
- GST sections amended in Finance Act 2023 - 27/03/2023
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