The CBIC has notified the simplified 'statement for payment of self-assessed tax' in Form GST CMP08 to be filed by taxpayers who have opted for composition scheme, under which businesses have to pay lower rate of tax on their turnover.
Giving relief to composition scheme taxpayers under the GST, the finance ministry has allowed such businesses to file ‘self-assessed tax’ return on quarterly basis in a simplified form. So far, businesses opting for composition scheme had to file tax returns every quarter in GSTR-4 which ran into around seven pages. As per a Central Board of Indirect Taxes and Customs (CBIC) notification, composition scheme taxpayers will now file GSTR-4 annually by April 30 for the previous financial year ending March 31.
The CBIC has notified the simplified ‘statement for payment of self-assessed tax’ in Form GST CMP08 to be filed by taxpayers who have opted for composition scheme, under which businesses have to pay lower rate of tax on their turnover.
The CMP08, which has to be filed by the 18th day of the subsequent month following the end of a quarter, will include details like outward supplies, inward supplies attracting reverse charge including import of services; tax, interest payable; and taxes and interest paid. Composition scheme businesses will file the April-June quarter returns in July as per the new format.
Small traders and manufacturers with a turnover of Rs 1.5 crore pay a 1 per cent GST, while service providers and suppliers of both goods and services up to a turnover of Rs 50 lakh pays 6 per cent. Businesses who have not opted for composition scheme have to file GST returns every month and also pay taxes as per the GST slabs decided for the goods and services they deal in. Currently there is a 4-tier GST- 5, 12, 18 and 28 per cent.
There are 1.21 crore businesses registered under Goods and Services Tax (GST), of which 20 lakh are under composition scheme. AMRG & Associates Partner Rajat Mohan said composition taxpayers have been relieved from the burden of filing a detailed and cumbersome quarterly return which would now be filed only on an annual basis. “For the purposes of tax payment composition taxpayer would now be filing a simplified quarterly statement for payment of self-assessment tax. This initiative of government would act as an incentive for small and upcoming businesses to accept composition scheme without any fear of compliance,” Mohan added.