Are Composition Taxpayers allowed to sell Exempted Goods ?


Are Composition Taxpayers allowed to sell Exempted Goods?

Yes. Composition taxpayers are allowed to sell Exempted goods.

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

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.

Where to enter Exempted Supply in GSTR-4?

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.