CT News Bureau

Well most of you might not have got a chance to know that GSTN has launched an offline tool for filing of quarterly returns for taxpayers who opted for the composition scheme. The offline tool for preparation of GSTR-4 is available on GST portal and can be downloaded by composition dealer and tax consultants.

The GST return for a composition dealer in GSTR 4 can be prepared only using the offline tool. This has been done to facilitate the composition dealer who can prepare the same on his own computer as per his convenience.

Since a composition dealer would have to work offline with the returns, so he need not be required to be connected to Internet for preparing his returns. The offline tool will also allow a composition dealer to check his final payable amount and save the return for his future use. And then create the return file and upload it onto GSTN with the help of Internet services.

Under the Goods and Services Tax (GST) which was rolled out from July 1, nearly 15 lakh businesses opted for composition scheme, which allows them to pay taxes at a concessional rate and makes compliance easy.

The first return by a composition dealer for the quarter July – September was itself filed from 24th December 2017 meaning the utility to file the returns was itself introduced from December onwards. The scheme is optional under which manufacturers other than those of ice cream, pan masala and tobacco products have to pay a 1 per cent tax on their aggregate annual taxable turnover. And also the reduced tax rate benefit was extended to composition dealer engaged in trading business (Buy and Sell). And for businesses engaged in restaurant services of serving food to customers the tax rates were shortened to 5% but with no benefit of Input tax credit.

Every registered businesses under GST has amalgamated over a dozen indirect taxes, if not more to make India into a single market for seamless flow of goods and services. The GST Council had also raised the turnover threshold from Rs 75 lakh which was the initial limit fixed at the time of enrollment of GST to Rs 1. 5 crore for the composition dealer to opt for the scheme and to attract more number of small taxpayers towards GST womb by providing benefits in form of lesser compliance burden, only one quarterly return and an annual return, no requirement to maintain detailed records. Hence, those with turnover of up to Rs 1.5 crore can take advantage of the composition scheme and avail these benefits.

And beside, the government has also deployed skill trainers to help composition dealers to file their returns. The step has been taken to help composition dealers since after the government faced criticism for the multi-stage system that needs to be followed to file returns.

Importance of technology for a composition dealer under GST era : If you are a composition dealer, technology must help you stay GST compliant, while making your everyday business affairs easy to manage. As a dealer, one must know what he needs to stay GST compliant and he can find these answers from within the organisation or business he runs. And technology could be one such hinting factor to stay GST compliant as every feature at GSTN is technology driven. So a composition dealer must demand following from a software or ERP system he chooses to comply with GST composition scheme.
• The ERP system or the software should be capable of setting tax rates to easily calculate GST liability.
• The ERP software should be capable to segregate turnover into taxable, nil and exempt turnover
• Should be capable to record purchases in a right manner for instance, for purchases made from regular dealers, you will be charged CGST and SGST for local purchases, or IGST in case of purchases made from other states. These taxes have to be accounted in as cost since you cannot claim any Input Tax Credit on these taxes. Also, these costs have to be added to the purchase cost of goods so that you can clearly make out the cost for the particular good.
• Should be able to generate eway bills for intra-state transactions entered by him
• Should be capable of managing transactions under Reverse Charge Mechanism
• Should enable provision to generate bill of supply

If the technology has the answers for the above mentioned characteristics, then the technology would certainly bear the burden of GST compliance on its shoulders for a composition dealer.