GSTR-4 Return Filing: Meaning, Applicability, Due Date & Procedure

GSTR-4 is an annual GST return that must be filed by taxpayers opting for the Composition Scheme under GST registration. Dealers registered under the Composition Scheme can file their GST returns online through the GST portal using Form GSTR-4. The process involves logging in, selecting GSTR-4, entering details, verifying, and submitting with DSC or EVC. A GSTR 4 late fee is applicable if the return is filed beyond the prescribed deadline. This article provides detailed information regarding GSTR-4, including its meaning, applicability, and filing procedure.

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What is GSTR-4?

GSTR-4 refers to the yearly return taxpayers registered under the GST Composition Scheme must file for each financial year. From April 1, 2019, onwards, businesses that have opted for or were in the Composition Scheme for any period during the year are required to submit Form GSTR-4 (Annual Return). This return includes details of outward supplies, inward supplies, import of services, and supplies attracting reverse charge. Filing GSTR-4 ensures compliance with GST regulations and helps maintain accurate tax records.

GSTR-4 Applicability

GSTR-4 is applicable to taxpayers opting for the composition scheme under GST. There is no specific turnover limit for filing GSTR-4; however, the composition scheme itself is available to small taxpayers whose aggregate turnover in the preceding financial year did not exceed ₹75 lakhs. Additionally, GSTR-4 also applies to service providers under the special composition scheme introduced through CGST (Rate) Notification No. 2/2019, effective from FY 2019-20. This return ensures compliance for composition taxpayers by simplifying their tax filing requirements.

Also read: GST rates for Goods and Services in India

GSTR-4 Due Date

As mentioned, GSTR-4 is a “yearly return” that must be filed by composition taxpayers. Until FY 2018-19, taxpayers were required to file GSTR-4 quarterly. However, with the introduction of the Third Amendment to GST Rules in 2019, the quarterly filing was replaced by Form GST CMP-08 for tax payments, while GSTR-4 was redesigned as an annual return. This revision simplified compliance for composition taxpayers by reducing the filing frequency.

 Composition taxpayers must file GSTR-4 on an annual basis and must be filed by the 30th of April following the relevant financial year to ensure compliance.

Update: As per the 53rd GST Council meeting, the due date to file GSTR-4 has been extended. From FY 2024-25 onwards, you can file GSTR-4 by 30th June of the next financial year. For example, for the financial year 2024-25, the due date will be 30th June 2025. This change was notified through CGST Notification 12/2024 dated 10th July 2024.  

GSTR-4 Format: What Does it Contain?

The revised annual Form GSTR-4 is structured into nine sections, covering essential details of composition taxpayers. Below is a breakdown of the form:

Tables 1-3: Basic Details

These sections include auto-populated details such as GSTIN, taxpayer’s legal and trade name, and aggregate turnover from the preceding financial year. The ARN and its date are updated post-filing.

Table 4: Inward Supplies Including Reverse Charge

This section requires taxpayers to report inward supplies, including:

• Supplies from registered suppliers (other than reverse charge)
• Supplies from registered suppliers (subject to reverse charge)
• Supplies from unregistered suppliers
• Imported services subject to reverse charge

Table 5: Summary of Self-Assessed Liability

The liability summary is auto-populated from Form GST CMP-08, which records quarterly payments made on outward supplies, reverse charge supplies, taxes paid, and interest dues.

Table 6: Tax Rate-Wise Details of Supplies

Taxpayers must provide tax rate-wise details of outward supplies and inward supplies subject to reverse charge. The IGST, CGST, SGST, and Cess amounts are auto-calculated.

Table 7: TDS/TCS Credit Received

This section captures any TDS/TCS credit received from suppliers or e-commerce operators, including GSTIN details, invoice value, and deducted TDS.

Table 8: Tax, Interest, and Late Fee Payable & Paid

Tax liabilities and payments are recorded here, including:

• Auto-populated tax payable from Table 6
• Taxes already paid via GST CMP-08
• Balance tax payable
• Interest and late fee details for delayed payments

Table 9: Refund Claimed from Electronic Cash Ledger

If excess tax has been paid, taxpayers can claim a refund by specifying the tax, interest, penalty, or other amounts to be refunded.

Verification

Taxpayers must authenticate the accuracy of the details by signing the form before submission.

Below, we have given the PDF of the GSTR 4 Form for your reference,

How to File GST-4 Returns?

Filing GSTR-4 online on the GST portal is a straightforward process. Follow these steps to complete your return submission:

• Log in to the GST Portal: Use your credentials to access the GST portal.
• Navigate to the Annual Return Section: Go to Services > Return > Annual Return on the dashboard.
• Select the Financial Year: Under the File Annual Return section, choose the relevant financial year.
• Prepare the Return Online: Read the instructions carefully and select Prepare Online to proceed.
• Enter Required Details: Fill in the necessary details across various sections of GSTR-4.
• Review Your Return: Download and verify your return using the Download GSTR-4 Summary (PDF) or Download GSTR-4 (Excel) option.
• Submit the Return: Tick the declaration checkbox, select the authorised signatory, and click File GSTR-4.
• Complete Filing: Confirm the warning message by selecting Yes, then choose either File with DSC or File with EVC to submit.
• Receive Confirmation: Once filed, the return status updates to Filed, and you receive an Application Reference Number (ARN) along with a confirmation via SMS or email.

GSTR-4 Late Fees

GSTR-4 late fees is Rs. 50 per day which is applicable for delayed GSTR-4 filing, capped at a maximum of Rs. 2,000. However, if there is no tax liability (Nil return), the late fee is limited to Rs. 500. Previously, the penalty was Rs. 200 per day, with a maximum cap of Rs. 5,000, but this has now been reduced to ease the burden on taxpayers.

Conclusion

In conclusion, GSTR-4 is an important annual return for composition taxpayers, ensuring GST compliance through a streamlined filing process. With detailed reporting requirements and a revised late fee structure, it simplifies tax obligations for small businesses. By filing within the due date and maintaining accurate records, taxpayers can avoid penalties and ensure smooth compliance with GST regulations. 

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Related Articles on GSTR Filing

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• GSTR-2 Filing
• GSTR-3 Filing
• GSTR-3B Filing
• GSTR-5 Filing
• GSTR-5A Filing
• GSTR-6 Filing
• GSTR-7 Filing
• GSTR-8 Filing
• GSTR-9 Filing
• GSTR-10 Filing
• GSTR-11 Filing

FAQs on GSTR-4 Return Filing

1. What is GSTR-4, and who needs to file it?

GSTR-4 is an annual GST return that must be filed by taxpayers registered under the Composition Scheme. It includes details of outward and inward supplies, taxes paid, and other financial information.

2. What is the due date for filing GSTR-4?

The due date for filing GSTR-4 is April 30 of the following financial year. It is important to file before the deadline to avoid late fees and penalties.

3. What happens if I fail to file GSTR-4 on time?

If you fail to file GSTR-4 on time, a late fee of ₹50 per day (₹25 CGST + ₹25 SGST) is applicable, with a maximum cap of ₹2,000. For Nil returns, the late fee is limited to ₹500.

4. How do I file GSTR-4 online?

You can file GSTR-4 by logging into the GST portal, selecting the relevant financial year, entering the required details, reviewing the form, and submitting it using DSC or EVC authentication.

5. Can GSTR-4 be revised after submission?

No, once GSTR-4 is filed, it cannot be revised. It is crucial to verify all details before submitting the return.

6. Is GSTR-4 applicable to all composition dealers?

Yes, all composition taxpayers, including manufacturers, traders, and service providers under the special composition scheme, must file GSTR-4 annually.

7. What is the difference between GSTR-4 and GST CMP-08?

GSTR-4 is an annual return, while GST CMP-08 is a quarterly statement used for tax payment under the Composition Scheme.

8. Do I need to report purchases in GSTR-4?

Yes, you must report inward supplies, including purchases from registered and unregistered suppliers, as well as reverse charge transactions.

9. Is filing GSTR-4 mandatory even if there is no business activity?

Yes, even if there is no business activity during the financial year, composition taxpayers must file a Nil GSTR-4 return to remain compliant.

10. Can I claim an input tax credit (ITC) while filing GSTR-4?

No, composition taxpayers cannot claim ITC. They pay tax at a fixed rate and file GSTR-4 to report their annual turnover and tax payments.

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