How to File GST Returns for Composite Dealers?

Posted In | Finance | Accounting Software | India Accounting Tax

GST, or Goods and Services Tax, is a tax that has simplified the taxation system in India. For small businesses, the GST regime offers a scheme known as the Composite Scheme. This scheme has made it easier for small businesses to comply with GST regulations. However, a composite dealer needs to know how to file GST returns properly. This article provides a step-by-step guide on how to file GST returns for composite dealers.
 

Understand the Composite Scheme

Firstly, it is important to understand what the Composite Scheme is. Under this scheme, small businesses with an annual turnover of up to Rs 1.5 crores can opt to pay a fixed percentage of their turnover as tax. This simplifies the compliance burden since they are exempted from maintaining detailed records. The GST rates for composite dealers range from 1% to 5%.
 

Know the GST Return Form for Composite Dealers

Composite dealers are required to file quarterly GST returns using Form GSTR-4 by the 18th of the month following the quarter. For example, for the January-March quarter, the GSTR-4 has to be filed by April 18th.
 

Filing GST Returns: Step-by-Step Guide
 

Step 1: Login to the GST Portal

Visit the GST Portal at www.gst.gov.in and login using your GSTIN and password.
 

Step 2: Navigate to the Returns Dashboard

Once logged in, go to the 'Services' menu, then click on 'Returns' and finally 'Returns Dashboard'. Select the financial year and the return filing period for which you want to file the return.
 

Step 3: Fill in the Details in Form GSTR-4

Select the return 'GSTR-4' and click on 'Prepare Online'. You will need to provide details like total turnover, details of inward supplies, tax on outward supplies, tax paid and payable etc.
 

Step 4: Save and Preview the Form

Once all details are filled in, click on 'Save' to save the form. You can preview the form by clicking on 'Preview' to check for any discrepancies.
 

Step 5: Calculate the Tax and Make the Payment

Based on the details provided, the system will calculate the tax payable. You can then proceed to make the payment using the appropriate payment methods.
 

Step 6: File the Return

Once the payment is made, you can file the return. You will receive an acknowledgement number confirming the successful filing of the return.

 

Filing GST returns as a composite dealer is a straightforward process if you understand the steps involved. By regularly filing your GST returns, you can avoid penalties and ensure compliance with the GST regulations. Remember, timely filing of GST returns is an important part of your business's financial health and legal compliance.