Form Gstr 4 Due Date Extension

Form GSTR-4 is a quarterly GST return that must be filed by a person enrolled under the GST Composition Scheme. The time limit to file GSTR-4 annual returns for the financial year 2019-2020 had been extended till July 15, 2020, on April 3, 2020. After the extension announced there were several representations for further extension of form GSTR-4 due dates. Considering this, The Central Board of Indirect Taxes and Customs (CBIC) extends the due date for filing form GSTR-4 till August 31, 2020.

Gist of Notification

The Central Board of Indirect Taxes and Customs (CBIC) vide its notification No. 59/2020-Central Tax dated 13.07.2020 extends the due date of filing form GSTR-4 till August 31, 2020, by amending the Notification No. 21/2019- Central Tax dated April 23, 2019. This notification specifies the guidelines for registered persons paying taxes under Section 10 of the Central Goods and Service Tax Act, 2017, which is related to composition levy. For extension, CBIC amends the first provision of the third paragraph of the said Notification, to extend the due date of Form GSTR-4 till “August 31, 2020” instead of “July 15, 2020”.

GSTR- 4 Filing – Annual Return for Composition Scheme

GSTR-4 is an annual return that must be filed by those enrolled under the GST Composition Scheme. Businesses registered under the GST Composition Scheme, are required to file one return every year and pay a flat GST tax based on the sales turnover. Not all businesses entities can be registered under the GST composition scheme. Only entities with an annual turnover of less than Rs.1.5 crore and satisfying other criteria can be enrolled under the Composition Scheme.

GST Composition Scheme

The GST composition scheme is designed to help small taxpayers having a turnover of up to Rs.1.5 crore per annum (North-Eastern states and Himachal Pradesh, the limit is Rs.75 lakh.) with a simple GST compliance mechanism. Entities registered under the GST composition scheme will be able to pay tax at prescribed rates and file GST returns. Service providers are not eligible to be enrolled under the GST composition scheme, expect for restaurant service providers. Under the scheme, manufacturers and traders are needed to pay GST at 1 percent, while it is 5 percent for restaurant service providers (which do not serve alcohol).

Form GSTR-4 Return Filing

To help taxpayers to file GSTR-4 return offline, Goods and Service Tax Network (GSTN) provides the Excel-based GSTR 4 Offline Utility. Taxpayers can file form GSTR-4 return by uploading the JSON file generated from the Offline utility to the GST portal. Know more about

Form GSTR-4 Return Filing

FORM GST CMP-08

The composition scheme taxpayers also need to file a self-assessed tax return in a one-page statement, i.e. Form GST CMP 08 as per the Central Goods and Service Tax Rules, 2017. The taxpayer needs to file this quarterly return by the 18th day of the month.

Penalty for GSTR-4 Late Filings

A late fee of Rs.200 per day will be levied if the form GSTR- 4 is not filed within the due date. The maximum late fee should not exceed Rs. 5,000. The CBIC’s notification pertaining to the Form Gstr 4 Due Date Extension is attached below for reference.

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Frequently Asked Questions

Common questions about GSTR-4 Due Date Extension.

Form GSTR-4 is an annual return that must be filed by taxpayers enrolled under the Goods and Services Tax (GST) Composition Scheme. It is a quarterly GST return that needs to be submitted by businesses registered under the Composition Scheme, which allows them to pay a flat GST tax based on their turnover.

Businesses registered under the GST Composition Scheme, with an annual turnover of less than Rs. 1.5 crore (or Rs. 75 lakh for North-Eastern states and Himachal Pradesh), are required to file Form GSTR-4 on a yearly basis. Service providers, except for restaurant service providers, are not eligible to be enrolled under the Composition Scheme and hence do not need to file GSTR-4.

Originally, the due date for filing Form GSTR-4 for the financial year 2019-2020 was July 15, 2020. However, considering various representations for further extension, the Central Board of Indirect Taxes and Customs (CBIC) has extended the due date to August 31, 2020, through Notification No. 59/2020-Central Tax dated July 13, 2020.

If Form GSTR-4 is not filed within the due date, a late fee of Rs. 200 per day will be levied, subject to a maximum of Rs. 5,000. It is advisable to file the return on time to avoid any penalties.

The Goods and Service Tax Network (GSTN) provides an Excel-based GSTR-4 Offline Utility to help taxpayers file GSTR-4 returns offline. Taxpayers can generate a JSON file using this utility and upload it to the GST portal to file the return.

The GST Composition Scheme is a simplified compliance mechanism designed for small taxpayers with an annual turnover of up to Rs. 1.5 crore (or Rs. 75 lakh for North-Eastern states and Himachal Pradesh). It allows them to pay GST at a flat rate, instead of the regular GST rates, and file returns on an annual basis (GSTR-4) instead of monthly or quarterly returns.

Under the GST Composition Scheme, manufacturers and traders are required to pay GST at 1% of their turnover, while restaurant service providers (not serving alcohol) need to pay GST at 5% of their turnover.

In addition to filing Form GSTR-4 annually, composition scheme taxpayers also need to file a self-assessed tax return in Form GST CMP-08 on a quarterly basis. This one-page statement must be filed by the 18th day of the month following the quarter.

The Central Board of Indirect Taxes and Customs (CBIC) issues notifications to amend or extend the due dates for filing various GST returns, including Form GSTR-4. In this case, Notification No. 59/2020-Central Tax dated July 13, 2020, was issued to extend the due date for filing GSTR-4 for the financial year 2019-2020 to August 31, 2020.

The extension of the due date for filing Form GSTR-4 is intended to provide relief to taxpayers enrolled under the GST Composition Scheme, especially in light of the COVID-19 pandemic situation. By extending the deadline, the CBIC aims to facilitate easier compliance and minimize penalties for late filing during these challenging times.