GST
Import of services in GSTR-4
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Facts
Import of services is reported in Table 4D. A composition taxpayer still pays tax on it under reverse charge.
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
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.
Conclusion
- List foreign service payments for the year.
- Check if they were billed with Indian GST.
- Enter imports without Indian GST in Table 4D.
- Check the reverse charge tax computed.
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GSTR-4 annual return for composition dealers
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