10 July 2024
Under the GST composition scheme, dealers filing GSTR-4 are required to report their annual turnover and pay tax quarterly at a fixed rate without claiming input tax credit (ITC). Here are the specific requirements regarding purchase invoices for GSTR-4:
### Reporting Requirements in GSTR-4:
1. **Sales Turnover Only**: - GSTR-4 primarily focuses on reporting the annual turnover (sales) of the composite dealer. This turnover is reported in the consolidated form for the entire financial year.
2. **No Upload of Purchase Invoices**: - Unlike regular taxpayers who need to report both sales and purchase details in their GST returns, composite dealers under GSTR-4 are not required to upload purchase invoices or provide details of inward supplies (purchases).
3. **Simplified Filing**: - The GSTR-4 form is designed to be simpler and more straightforward for composition dealers. It typically includes fields for reporting gross turnover, tax payable, and any other necessary details related to the composition scheme.
4. **Annual Return Filing**: - The annual return for composite dealers (GSTR-4) summarises the quarterly details provided throughout the financial year. It consolidates the turnover and tax paid under the composition scheme.
### Compliance and Documentation:
- **Maintain Purchase Records**: While composite dealers do not report purchase invoices in GSTR-4, it's essential to maintain proper records of all purchases for compliance and audit purposes.
- **GST Compliance**: Ensure all purchases made are from registered GST dealers to avail of the benefits under the composition scheme and to avoid complications in GST compliance.
### Conclusion:
Composite scheme dealers filing GSTR-4 need to focus primarily on reporting their annual turnover (sales) and paying tax accordingly. They are not required to upload or report purchase invoices in this return. However, maintaining accurate records of purchases is crucial for overall GST compliance and audit readiness.
If you have specific queries or need further clarification regarding your GST obligations under the composition scheme, it's advisable to consult with a GST professional or refer to the latest guidelines issued by the GST authorities.
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