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Where to enter Exempted Supply in GSTR-4?

Soumya Laha 
on 08 June 2018

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There is no doubt that Composition Taxpayers need to file GSTR-4 quarterly and they need to furnish the details of Inward supplies (Purchases) and Outward supplies (Sales) in GSTR-4. But Taxpayers becomes confuse when they started to enter data in GSTR-4. The confusion is where to enter Exempted Outward Supplies to Registered / Unregistered supplier in GSTR-4.

The confusion increases when we saw there is a proper column in GSTR-1 (for regular taxpayers) to show the details of Zero rated / Nil rated / Exempted supplies, but there is no such column/field in GSTR-4 to show the details of Exempted supplies.

In GSTR-4, taxpayers need to enter the value of Turnover of that quarter upon which tax will be calculated.

But, several questions may arise on Exempted supplies in Composition Scheme.

Q. Are Composition Taxpayers allowed to sell Exempted Goods ?

A. Yes. Composition taxpayers are allowed to sell Exempted goods.

Q. How would the Taxpayer show his Exempted Supplies in GSTR-4?

A. There is no proper column is GSTR-4 to show the Exempted Outward Supplies.

According to CBEC, Traders can sell Exempted goods within state and they need not to show Exempted supply in his Turnover.

TRADERS need to less the Exempted supplies value from Total Turnover and then show it in GSTR-4.

Turnover = Total Turnover (Sales) - Exempted Supplies.

MANUFACTURERS need to show Exempted supplies in his Total Outward supply details.

Q. Whether a Trader need to show his Exempted supplies in his Aggregate Turnover (Annual Turnover) or not ?

A. In Composition Scheme, a Trader need not to show his Exempted supplies in his Taxable turnover. But he need to enter his Exempted supplies in his Aggregate turnover of a financial year.

Q. Is there any official notification on Exempted supplies in GSTR-4?

A. CBEC published various e-documents such as,

You may read these documents to understand the matter.

Q. Is there any Act on this matter?

A. Yes, please read the Section 10 of CGST Act, 2017 (ammended) below,

Composition Levy ( CGST ACT,2017 )

Section 10.

(1) Notwithstanding anything to the contrary contained in this Act but subject to the provisions of sub-sections (3) and (4) of section 9, a registered person, whose aggregate turnover in the preceding financial year did not exceed fifty lakh rupees, may opt to pay, in lieu of the tax payable by him, an amount calculated at such rate as may be prescribed, but not exceeding, -

(a) one per cent. of the turnover in State or turnover in Union territory in case of a manufacturer,

(b) two and a half per cent. of the turnover in State or turnover in Union territory in case of persons engaged in making supplies referred to in clause (b) of paragraph 6 of Schedule II, and 

(c) half per cent. of the turnover in State or turnover in Union territory in case of other suppliers, subject to such conditions and restrictions as may be prescribed:

Provided that the Government may, by notification, increase the said limit of fifty lakh rupees to such higher amount, not exceeding one crore rupees, as may be recommended by the Council.

(2) The registered person shall be eligible to opt under sub-section (1), if:—

(a) he is not engaged in the supply of services other than supplies referred to in clause (b) of paragraph 6 of Schedule II;

(b) he is not engaged in making any supply of goods which are not leviable to tax under this Act; 

(c) he is not engaged in making any inter-State outward supplies of goods;

(d) he is not engaged in making any supply of goods through an electronic commerce operator who is required to collect tax at source under section 52; and

(e) he is not a manufacturer of such goods as may be notified by the Government on the recommendations of the Council:

Provided that where more than one registered persons are having the same Permanent

Account Number (issued under the Income-tax Act, 1961), the registered person shall not be

eligible to opt for the scheme under sub-section(1) unless all such registered persons opt to pay tax under that sub-section.

Click here to read CGST Act, 2017 (Amended) 


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