GSTR 4 –Composition Scheme: Rules, Return Filing Procedures & Dates

By growbiz

If you opted in / out from GST Composition Scheme, you may facing several problems. Most of the problems are common to all taxpayers who opted in / out from composition scheme. Let’s check out those expected common problems with probable solutions.

Q: Obtained new registration and opted to pay tax under Composition Scheme. How to file GSTR-4?

A: Download GSTR-4 offline tool from GST portal and fill it. Then upload the JSON file of GSTR-4 offline tool in the portal.

Q: Do I need to enter details of Purchase from registered dealer in GSTR-4?

A: In GSTR-4, there must be an column (4A) to enter the details of purchase received from a registered dealer (other than supplies attracting reverse charge). But there is no 4A column in GSTR-4 offline tool for jul-sep quarter. Also in the ‘Read me’ section of GSTR-4 offline tool it is clearly written that 4A column is not applicable for Quarter 2 & 3 (Jul-sep&oct-dec) period in FY 2017-18. Hence, according to rule no scope to fill purchase details from registered dealer in GSTR-4 for Jul-sep quarter.

Q: Who can file GSTR-4 for Jul-Sep quarter?

A: The migrated taxpayers who have opted to pay tax under composition scheme by filing intimation in Form GST CMP-01 before 16 August 2017. The taxpayers who have obtained new registration in GST regime and opted to pay tax under composition scheme while filing application in Form GST REG-01.

Q: How to pay the tax?

A: Go to GST Portal> Services> Payments> Create challan.

Q: Can I claim ITC?

A: ITC is not available to the composition taxpayers.

Q: What is percentage of tax I need to pay?

A: Composition taxpayers need to pay tax on their quarterly aggregate turnover. The tax rate is,
2% for Manufacturers,
5% for Supplier of food and drinks for human consumption (without alcohol)
1% for Traders (others)

Q: Opted in Composition Scheme on 1st Oct, 2017. Do I need to file GSTR-4 for Jul-Sep quarter?

A: Hope you already filed GSTR-3B for July, Aug, Sept and GSTR 1&2 for Jul. So, you need not to be file GSTR-4 for Jul-Sep quarter. Your return filing dashboard will be updated soon.

Q: Opted out from Composition Scheme on 1st Oct, 2017. Do I need to file GSTR-4 for Jul-Sep quarter?

A:You were in Composition Scheme before 1st Oct and no collected any tax from customer. Hence you need to file GSTR-4 for jul-sep quarter. Hope an official notification regarding this matter will come out soon.

Q: Opted in Composition Scheme on 1st Oct. But there is no option to file GSTR-1 & 2 for Aug & Sep? Even no previous return filing records are showing.

A: As you are now existing in Composition Scheme, the Return filing dashboard is showing as quarterly basis. Also no previous regular scheme records are showing as you are now in composition scheme. Don’t worry it’s a common problem for all who opted in composition scheme on 1st october. No last date till announced to file GSTR-1, 2 & 3 for August, September. Your return filing dashboard will be updated soon.

Q: What is the last date to file GSTR-4 for Jul-Sep?

A: The Govt. announced 24th Dec. 2017 is the last date to file GSTR-4 for Jul-Sep quarter.

Q: Opted in Composition Scheme on 1st Oct, but ITC balance is still showing in Electronic credit ledger. Can I offset that ITC in Oct-Dec quarter?

A: You can not avail ITC in Composition scheme. You may use the ITC at the time of filing GSTR-3 for Aug and Sep. Hope a new official notification will be available soon.

Q: Late fee waived for GSTR-3B of Jul, Aug & Sep. But no refund received?

A: A ‘Refunds’ tab already added in the portal. Hope it will be activated soon.

Disclaimer: The views expressed in this article are strictly personal. The content of this document are solely for informational purpose. It doesn’t constitute professional advice or recommendation. The Author does not accept any liabilities for any loss or damage of any kind arising out of information in this article and for any actions taken in reliance thereon.

Refund Process For Exporters Under GST

By growbiz

This article talks about the latest developments in the refund procedure for exporters under GST regime who were suffering due to huge working capital blockages either due to payment of IGST for making exports or by way of un- utilised ITC on inputs in case the exports were effected via LUT/Bond and non-availability of the refund module (RFD-01) on the GSTN common portal.

    As per Section 54(8) of the CGST Act, Refunds may arise under the following situations:

  • 1. Exports of goods with payment of IGST (Rule 96 applicable)
  • 2. Exports of goods without payment of IGST.( accumulated ITC) (Rule 89 applicable)
  • 3. Exports of services with or without payment of IGST( both situations) (Rule 89 applicable)
  • 4. On account of supply of goods or services made to SEZ Unit / SEZ Developer.
  • 5. In case of deemed Exports,
  • 6. On account of assessment/ provisional assessment/ appeal/any other order
  • 7. ITC accumulated due to inverted tax structure
  • 8. Tax paid on advances and subsequently refunded due to non -supply or partial supply.
  • 9. Tax deposited under wrong head

As per the provisions of GST Law, Refunds to be granted to the dealer electronically on the basis of application in RFD-01 in all the above cases except Exports of Goods with payment of IGST for which Exports details are required to be filled in Table 6A of GSTR-1 and the same would be deemed to be an application for Refund.

But due to the non-availability of the refund module (RFD-01) on the common portal, the refund could not be claimed by the dealer and GSTR-1 provided initially only for July-2017 and later on Window closed on 04/10/2017 even for GSTR-1 and now extended the due date for filing GSTR-1 up to 31/12/2017 for the month of July-2017, August-2017, September-2017 & October-2017. Under the situation, none is in a position to claim Refund from the department.

Vide Notification No.39/2017-Central Tax, dt. 13-10-2017 Officers are given powers to sanction, process and grants Refunds manually to the dealers.

Vide Notification No.45/2017-Central Tax, dt. 13-10-2017, an additional Table 6A of GSTR-1 is provided on the portal to facilitate early refunds as the due dates for GSTR-1 has been extended to 31.12.2017 for the m/o July, August, September & October 2017 and this Table 6A will be auto-populated in the GSTR-1 of the respective tax periods as and when final GSTR-1 would be finally filed by the dealer. This additional Table 6A is given on the portal so that the exporters can file the details of zero rated supply and proceed for refund without having to wait to file GSTR-1.

The refund of integrated tax paid on goods exported out of India (as listed at S. No. 1 above) is governed by rule 96 of the CGST Rules which says that the shipping bill filed by an exporter shall be deemed to be an application for refund. This application shall be deemed to have been filed only when export details are filed in TABLE 6A OF GSTR-1 which is available on the common portal and the applicant has furnished a valid return in FORM GSTR-3B. The system designated by the Customs shall process the claim for refund and an amount equal to the integrated tax paid in respect of such export shall be electronically credited to the bank account of the applicant. The Shipping bill details shall be checked by officer through ICEGATE SITE ( wherein the officer would be able to check details of EGM and shipping bill by keying in port name, Shipping bill number and date. It is essential that exporters should ensure that there is no discrepancy in the information furnished in Table 6A of GSTR 1 and the Shipping Bill. It has been observed that certain common errors such as incorrect Shipping Bill number in GSTR1, mis-match of invoice number and IGST amount paid, wrong bank account etc. are being committed by exporters while filing their returns. These errors are the sole reason for delay in grant of refunds, or rejection thereof. While information has been made available to Exporters on the ICEGATE portal if they are registered, they may also contact jurisdictional Customs authorities to check the errors they have committed in furnishing information in GST returns and Shipping Bill, and rectify them at the earliest. As the Customs system is designed to automatically grant refunds without involvement of any officer by matching information that is furnished on GSTN portal and Customs system, the onus is on the exporters to fill in all the details accurately. Exporters may therefore take due precaution to ensure that no errors creep in while filing Table 6A of GSTR 1 of August 2017 and onwards. The facility for filing GSTR 1 for August 2017 would also be ready by 4th December 2017. In case of wrong entries made in July, Table 9 of GSTR 1 of August month would allow amendments to GSTR 1 of July 2017.

Although RFD-01 was required to be filed electronically for claiming any nature of refund mentioned above except Exports of goods with payment of IGST but in the absence of RFD-01 on the common portal, a New form RFD-01A introduced to be filed manually by the exporters to facilitate early Refunds vide Circular no.17/2017 dated 15-11-2017.

As per Circular No. 17 dated 15/11/2017, RFD-01A can be filed manually by the Exporters in case of following situations

  • Exports of Goods without payment of IGST
  • Exports of services with or without payment of IGST
  • On account of supply of goods or services made to SEZ Zone / SEZ Developers

The application for refund of IGST Paid on Exports of services and supply of Goods or services or both to SEZ Zone or SEZ Developer shall be made by filing the printout of FORM GST RFD- 01A manually with the jurisdictional GST officer.

For Refund of unutilized ITC in all cases whether supply of goods or services or whether supply to SEZ Zone or SEZ Developers, in which supplies made without payment of IGST FORM GST RFD-01A needs to be filed on the common portal. The amount of credit claimed as refund would be debited in the electronic credit ledger and proof of debit needs to be generated on the common portal means The corresponding electronic credit ledger of CT / ST / UT / IT/ Cess would get debited and an ARN number would get generated which is to be mentioned on the printout of FORM GST RFD- 01A and needs to be submitted before the jurisdictional GST. Exporters are therefore advised to immediately file –

  • (a) Table 6A and GSTR 3B, if not already done, for processing of IGST refund
  • (b) RFD 01A on GSTN portal for refund of the unutilized input tax credit on inputs or input services used in making exports

How to claim refund of excess balance in electronic cash ledger?

By growbiz

Businesses have been protesting ever since the implementation of the new indirect tax reform i.e. GST. Due to the uncertainty in new tax reform, many traders had paid wrong tax amounts by mistake. This article talks about the new facility has been started by the government on its GSTN portal, under which the taxpayers who paid excess tax money by mistake, can now transfer the money back to their bank accounts. Also the step by step guide to claim such refund has been given to help our readers.

Previously, there was no option to alter the returns at GSTN Network. Now, the government says that if any of the traders had paid an extra amount of tax by mistake while filing returns, the money will be returned to them. This facility has started online from 29th November. With just one click, the money will be transferred directly to the bank account of the particular taxpayer.

To get back their excess tax money, businesses will be required to log on to GSTN portal by using their GSTN registered numbers and then they can apply for returning of the excess money. The money will automatically be credited to the concerned bank account.

The refund application on the GSTN Portal is available for Refund of Excess Balance in Electronic Cash Ledger. So, If you wrongly paid GST amount under wrong head or by any other manner, there was no possibility earlier under GST to set off or refund that amount. For example: Tax paid under interest head or interest paid under fees or penalty head or paid SGST amount wrongly under the head of CGST but now you can make an application for refund of excess balance shown in electronic cash ledger , and after that make another challan for right payment.

Follow the below mentioned simple steps to claim the Refund of Excess Balance in Electronic Cash Ledger:-

  • 1. Login on GST portal
  • 2. Go to services
  • 3. Click on Refund
  • 4. Click on Application for Refund
  • 5. Select the Refund type as Refund of Excess Balance in Electronic Cash Ledger
  • 6. Click on CREATE button.

This is the screenshot of how it appears on the GSTN Portal.

GSTN Portal


By growbiz


Two Days ago I was just talking with my uncle. We were discussing about GST. While having such discussion on the matter, he was looking little bit tensed. He told me that GST will increase the compliance burden and that’s why he was feeling burdened and little bit scared. At that time, the question striked in my mind that why people are scared for GST and to tell them to remove such fear from their mind.This Blog is for a layman who thinks that implementation of GST will put them in trouble, if you are one of those guys then read below and find out that you need not worry of GST.

Registration: You can register yourself easily through GSTN Portal. Registration under Goods And Service Tax is fairly easy process. It is Mandatory for every business with turnover of more than 20 Lac to get registered under GST. For Northeastern States threshold limit is 10 Lac. Businesses having turnover upto this threshold limits have the option to get registration under GST.

Registration under GST will increase the credibility of the business as under this new regime GST rating is provided by the department according to the compliance aspects of the assessee. This rating boost up the business by complying properly with the law.

Composition Scheme: Small traders/manufacturers supplying goods directly to the consumers (B2C) within the state with turnover, upto Rs. 75 Lac can avail Composition Scheme, by paying 1% or 2% of turnover and just relax.

Return Filling: Under GST Act, an assessee have to file three monthly returns and one annual return. There are separate returns for a taxpayer registered under composition scheme, resident taxpayer, non-resident taxpayer, input service distributor, service provider, person liable to collect/deduct tax and E-commerce operator.

Reduced Interaction with Department: All Interaction is through the common GSTN- Portal, so the assessee need not interact physically with the tax department.

Government Initiative: Considering the concerns on the preparedness of Trade and Industry, the GST Council has decided to relax the Rules for filing of returns for July and August 2017. The Returns for July and August 2017 would be filed on self assessment by 20th of the following month in Form GSTR 3B, which is a summary of Inward and Outward Supplies and the applicable tax is to be paid.

There are certain procedural aspects that are to be followed. An assessee is required to enter invoices containing all details regarding the transactions. Taxpayers have to ensure the credibility regarding timely payment of taxes and filling of return under the GST structure. GST will increase the cost of compliances. Such enhanced compliance requirements would increase the burden on a taxpayer. Because of these procedural aspects, people are getting scared with the implementation of GST.

But there is no need to worry. The Taxpayer should not be scared of GST. Government has provided GST Manuals and you can learn the compliance by yourself and if needed you can take help of your near & dear ones. Simplified and automated procedure for various processes such as registration, return fillings, tax payments, refunds etc. is provided by the government through GSTN Portal.

Besides this people are scared due to this change in taxation system. Every new regime creates a little bit of disturbance in the normal routine for the people for few days. As we all know that the Demonetization when announced created disturbance in the normal routine. But with the passage of time, everything will come in flow. So be calm. Do not put yourself under pressure. You just need to relax and calmly understand the concept of GST.

Hope my this blog will help you in eliminating your tension and fear of GST.

Praneta Mahatma


By growbiz

India’s textiles industry is one of the oldest industries in Indian economy dating back several centuries. Role of Textile Industry in India GDP has been quite significant and beneficial in the economic and social upliftment of the citizens of the country. The worldwide trade of textiles and clothing has boosted up the GDP of India to a great extent as this sector has brought in a huge amount of revenue in the country. The Indian Textiles and Apparel Industry contributes nearly to 10% of manufacturing production, 2% of India’s GDP and constitute 13% of Country’s export earnings.

Panipat, Ludhiana, Varanasi, Ahmedabad, Surat, Jaipur, Aurangabad are some of the famous textiles destinations of the region.

Introduction of GST regime w.e.f. 1st July 2017 will impact the whole textiles industry. Fabrics which was exempt under the old structure would now be taxed at 5%. Most of the textile items will be taxed @5% and 12%. Introduction of GST, replacing the present indirect taxation could have considerable impact on textiles industry. Impact of Goods & Service Tax (GST) on textiles industry could be determined only after some time as regular changes are taking place in the GST Law.

Under the current Indirect taxation System, tax is linked with production (as opposed to consumption) which leads to blockage of input taxes which tends to higher cost of production, whereas under the GST regime, it is expected that it will eliminate the blockage of input tax credit caused due to break of input tax credit chain as it shifts the tax burden from production to consumption. In GST regime, most of the indirect taxes such as Central Excise Duty, Service Tax, VAT/Sales Tax and Entry Tax would get subsumed. That is why it is said that GST IS ONE NATION ONE TAX


  • 1. Benefit to consumers:

    We can compare the old structure and GST structure as under:

    Current Taxation System

    Product Sold from Panipat To Karnal

    Price = Rs.1000

    Vat @ 10 % i.e. Rs.100/-

    Product Sold From Karnal To Pune

    Cost = Rs.1100

    Profit = Rs.1000

    Sale Price = Rs.2100

    CST @ 10% = Rs.210/-

    Total cost of Product= Rs.2310/-

    Current Taxation System

    Product Sold from Panipat To Karnal

    Price = Rs. 1000

    CGST @ 5% = Rs.50/- SGST @ 5% = Rs.50/-

    Product Sold From Karnal To Pune

    Cost = Rs.1100

    Profit = Rs.1000

    Sale Price = Rs.2100

    IGST @ 10% = Rs.110 /- i.e. 210- CGST - SGST

    Total cost of Product= Rs.2210/-

    Difference of Cost of Product between Current Tax and under GST system is Rs.2310-2210 = Rs.100/- which will ultimately benefit the ultimate consumers at large.

  • 2. Easy IT Compliance Structure:

    Under the current indirect taxation system, there is complexity in compliance and administration whereas GST provides simplified and automated procedure through a common portal GSTN, which improves the environment of compliance.
  • 3. Easy refund on Exports:

    Presently, Manufacturer and Traders are not inclined towards export due to extensive procedure cost and deferment in the processing of duty drawback, under GST, the system of duty drawback will lose its significance. Input tax credit will be provided as a refund under GST instead of current duty drawback scheme. And it would not be incorrect to say that it will lead to promote export of textiles products which leads the Indian economy at boom.
  • 4. GST Rate Matters:

    Besides the positive impacts there may be few drawbacks of GST due to high rate of taxes. For Textiles industry and its products, the GST rate of 12% can have a negative impact. Earlier, the assesses are paying 1.2% Excise duty + 5-6% of VAT which amounts to 6-7.2 % tax, on the other hand under proposed GST regime, the assesse have to pay 12 % tax which would be costlier for the assesse.

Besides of this drawback it would not be incorrect to say that GST will help this industry in the long run by getting more registered taxpayers and a well regulated system.

Praneta Mahatma