Composition scheme nil rated suply

Under the GST Composition Scheme, you are required to report your total turnover in your returns (such as Form CMP-08 and Form GSTR-4).

The term "turnover" under the Composition Scheme (as per Section 2(112) of the CGST Act) is broadly defined to include the value of all outward supplies, which encompasses:

• Taxable supplies

• Exempt supplies

• Nil-rated supplies

• Exports of goods or services (if applicable)

• Inter-State supplies (where permitted)

Key Points for Reporting:

• Comprehensive Turnover: Since the composition levy is calculated on your total "turnover in the State," you must include nil-rated and exempted supplies in your total turnover figures when reporting your business performance.

• Form CMP-08: This is a statement-cum-challan for self-assessed tax. While you pay tax only on the taxable portion of your turnover, you should ensure that your records and declarations reflect the total turnover (including nil-rated/exempted supplies) as required by the law's definition of turnover.

• Form GSTR-4 (Annual Return): When filing your annual return, you are required to provide details of your outward supplies. It is standard practice to report these figures accurately to match your books of accounts and your quarterly CMP-08 filings.

Recommendation:

While the tax is primarily paid on taxable supplies, the "turnover" for the purpose of the Composition Scheme includes all categories of supply. Always ensure your outward supply reporting in your annual and quarterly returns aligns with the total turnover calculated for your GSTIN. If you are ever uncertain about a specific entry in your portal, you may consult a tax professional or verify against the latest guidance provided on the GST Council's official resources.

Summary: Yes, you should include nil-rated supplies in your total turnover reporting under the Composition Scheme, as the legal definition of "turnover" for composition taxpayers includes all categories of supplies (taxable, exempt, and nil-rated).