GSTR-4-A-Detailed-Step-by-Step-Guide

GSTR-4: Due Date, Late Fees and A Detailed Step by Step Guide

CA Poonam Gandhi

Updated on February 2nd, 2024

Formerly, the registered person opting under the Composition Scheme was required to furnish a quarterly return in Form GSTR-4. However, from the Financial Year 2019-2020 onwards, the duration of filing of return in Form GSTR 4 is changed from quarterly to annually. In this article, you will get GSTR-4 Due Date, Late Fees and A Detailed Step by Step Guide

Accordingly, now, all the registered persons opting under the Composition Scheme are mandatorily required to furnish an annual return in Form GSTR-4.

Composition Scheme and Return Filing requirement thereon

Composition-Scheme - GSTR 4

Basis of Composition Scheme

  • The composition scheme is voluntary and optional in nature.
  • The registered person having an aggregate turnover below INR 150 Lakhs (INR 75 Lakhs for north-east states and Himachal Pradesh) can opt under the scheme.
  • For opting under Composition Scheme, the person should not be
  1. A casual taxable person or a non-resident taxable person.
  2. Engaged in inter-state supply of goods and services.
  3. Manufacturing goods like ice-cream and other edible ice; pan masala; all goods under heading 24.
  4. Engaged in supplying goods or services via e-commerce collecting TCS under GST section 52.
  5. Engaged in supplying services above INR 50 Lakhs or 10% of the preceding year’s turnover in the state/ union territory.
  6. Supplying goods or services which is not taxable under GST.

Return Filing Requirement of Composition Scheme Dealer

In terms of provisions of rule 62(1) of the Central Goods and Services Tax Rules, 2017, the registered person opting under the Composition Scheme is required to furnish the following tabulated returns

Relevant rule under which return is to be filed

Relevant Forms

Duration

GSTR 4 Due date

Rule 62(1)(i)

Details of payment of self-assessed tax in Form GST CMP-08

Quarterly return

18th of the month succeeding the end of the relevant quarter will be the GSTR 4 due date.

Rule 62(1)(ii)

An annual return in Form GSTR-4

Annual return

30th April following the end of the relevant financial year

Notably, filing of return in Form GSTR-4 is mandatory for all the person who has opted under the composition scheme. The same also includes-

  • Taxpayers who have opted for composition scheme either during the migration or during the initial registration under GST and has subsequently never opted out of the scheme
  • Taxpayers who have opted for the scheme, however, later opted out of the scheme during any time of the relevant Financial Year

Now coming to the GSTR 4 due date for filing an annual return for the Financial Year 2020-2021. As per the above tabulated details, the due date will be 30th April 2021. However, it is important to note here that, vide notification no. 25/2021- Central Tax dated 1st June 2021, the due date for filing return in Form GSTR-4 for the Financial Year 2020-2021 is extended till 31st July 2021.

Information to be furnished in Form GSTR-4

Information-to-be-furnished-in-Form-GSTR-4

Following types of information/ details are to be provided by the composition taxpayer in Form GSTR-4

  • Table 1 to Table 3 of Form GSTR-4 covers basic details of the composition registered person.
  • Table 4 of Form GSTR-4 covers details of inward supplies like-
  1. Inward supplies from the registered supplier.
  2. Inward supplies received from the registered supplier on which tax is payable under reverse charge mechanism.
  3. Inward supplies from the unregistered supplier.
  4. Details of import of services.
  • Table 5 of Form GSTR-4 covers the following auto-populated summary of self-assessed liability as per Form GST CMP-08
  1. Outward supplies (with exempt supplies).
  2. Inward supplies on which tax is payable under reverse charge (which also includes import of services.
  3. Tax paid.
  4. Interest paid.
  • Table 6 of Form GSTR-4 details the tax rate wise outward supplies and inward supplies attracting RCM.
  • Table 7 of Form GSTR-4 contains details of TDS/ TCS credit received.
  • Table 8 of Form GSTR-4 covers details of interest payable and paid as well as late fees payable and paid.
  • Table 9 of Form GSTR-4 contains details of refund claimed from electronic cash ledger.

Read More on:

TDS on GST | GSTR-7 Return Filing Process with Examples

QRMP Scheme under GST | Most Important QRMP Scheme Facts

Steps for Filing Form GSTR-4

Steps-for-Filing-Form-GSTR-4

Prior to the filing of Form GSTR-4, the composition scheme dealer should satisfy the following simple prerequisites

  • The person should have opted under the composition scheme for at least one day during the year for which the return is to be filed; and
  • The person should have filed all the quarterly return in Form GST CMP-08 for the relevant Financial Year for which return in Form GSTR-4 is to be filed.

By following below mentioned steps, one can easily file the return in Form GSTR-4-

Step 1

Go to GST portal i.e., https://www.gst.gov.in/

Step 2

Click ‘Login’ and enter the following login credentials

  • Username;
  • Password;
  • Characters shown in the image.

Step 3

Navigate the below path

Services > Returns > Annual Return

Step 4

Select the relevant Financial Year from the drop-down list and click SEARCH

Step 5

Both the return filing modes (i.e., online mode and offline mode) will be available. Click ‘PREPARE ONLINE’ for filing return via online mode. Whereas, click ‘UPLOAD/ DOWNLOAD JSON’ for uploading the JSON file

Step 6

Click the verification box

Step 7

Select the authorized signatory from the drop-down list and file the return in Form GSTR-4 using either DSC or EVC

It is important to note here that the return once filed in Form GSTR-4 cannot be revised.

GSTR 4 Late Fees Payable for Delay/ Non-Filing of Return

Section 47(1) of the CGST Act, 2017 deals with the provisions of late fees payable in case of late filing of return in Form GSTR-4.
Accordingly, the defaulter is liable to pay INR 200 per day (INR 100 under CGST + INR 100 under SGST).

However, the maximum amount of late fees payable will not be more than INR 5,000.

Relaxation in late fees payable for the Financial Year 2021-2022 onwards

Relaxation-in-late-fees

Vide notification no. 21/2021- Central Tax dated 1st June 2021, the fifth proviso is inserted to section 47 of the CGST Act.

Accordingly, the maximum amount of late fees payable for late filing of Form GSTR-4 for the Financial Year 2021-2022 onwards is reduced as under-

Particulars

Maximum late fees payable from the Financial Year 2021-2022 onwards

Where the total amount of central tax payable in the return in NIL.

INR 500 (INR 250 under CGST + INR 250 under SGST)

In any other case

INR 2,000 (INR 1,000 under CGST + INR 1,000 under SGST)

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CA Poonam Gandhi

About the author

Poonam Gandhi is a Chartered Accountant and a Lawyer, with practical experience of 9+ years in the field of Indirect Taxation.

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