Answer

GST

Import of services in GSTR-4

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  1. Facts

    Import of services is reported in Table 4D. A composition taxpayer still pays tax on it under reverse charge.

  2. Provisions and law

    • Rule 62, CGST Rules 2017Quarterly CMP-08 statement and annual GSTR-4 return for composition taxpayers
    • Sec 10, CGST Act 2017Composition levy: turnover limits, rates, conditions and no ITC
  3. Analysis

    The FAQ lists Table 4D for import of services, and reverse charge tax flows into the liability. Example: a composition cafe pays ₹24,000 a year for a foreign billing software; it reports this in 4D and pays IGST at the normal rate under reverse charge, with no ITC. Check whether the supplier charged Indian GST, which would make it a domestic purchase instead.

  4. Conclusion

    1. List foreign service payments for the year.
    2. Check if they were billed with Indian GST.
    3. Enter imports without Indian GST in Table 4D.
    4. Check the reverse charge tax computed.

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