Only ONE Return for Composition Scheme tax payer, Tax Payment quarterly.

To give effect to the decisions taken during the GST Council meeting, Notification No. 20/2019 Central Tax has been issued by CBIC to give effect to the following:

Only one return for composition Scheme taxpayer, Tax payment quarterly:

Rule 62 has been amended to give an effect that Composition taxpayer (Either registered u/s 10 or availing benefit of notification no. 2/2019 (Central tax Rate)) will have to file GSTR 4 only on annual basis on 30th April following the end of the Financial year e.g. For FY 2019-20 GSTR 4 has to be filed by 30th April 2020. 

However, tax is required to be paid in Form GST CMP-08 on a quarterly basis on 18th of the month following the end of the quarter.

If any person opts out of Composition Scheme, he has to pay tax for the relevant quarter on 18th of the following month.

e.g. If any taxpayer opts out of composition Scheme w.e.f. 31st August 2019, he has to pay tax for Jul and Aug 2019 in GST CMP-08 by 18th Oct 2019.

GST CMP 08

Note:

1. Even if No tax liability is there, NIL statement GST CMP - 08 has to be filed.

2. Negative values have to be reported as such. If the total tax payable becomes negative, the same has to be carried forward to the next period. This is in case of adjustment on account of a Debit/Credit note.

3. Since GST CMP - 08 is just a statement & not return and nothing expressly specified related to late fees of GST CMP - 08, in our opinion late submission of the same will attract only interest and not late fees.

4. GST CMP - 08 is a basic statement containing Outward supplies, Inward supplies with tax liabilities as can be seen from above.

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