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
Basis of Composition Scheme
- A casual taxable person or a non-resident taxable person.
- Engaged in inter-state supply of goods and services.
- Manufacturing goods like ice-cream and other edible ice; pan masala; all goods under heading 24.
- Engaged in supplying goods or services via e-commerce collecting TCS under GST section 52.
- Engaged in supplying services above INR 50 Lakhs or 10% of the preceding year’s turnover in the state/ union territory.
- Supplying goods or services which is not taxable under GST.
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
GSTR 4 Due date
Details of payment of self-assessed tax in Form GST CMP-08
18th of the month succeeding the end of the relevant quarter will be the GSTR 4 due date.
An annual return in Form GSTR-4
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-
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
Following types of information/ details are to be provided by the composition taxpayer in Form GSTR-4
- Inward supplies from the registered supplier.
- Inward supplies received from the registered supplier on which tax is payable under reverse charge mechanism.
- Inward supplies from the unregistered supplier.
- Details of import of services.
- Outward supplies (with exempt supplies).
- Inward supplies on which tax is payable under reverse charge (which also includes import of services.
- Tax paid.
- Interest paid.
Steps for Filing Form GSTR-4
Prior to the filing of Form GSTR-4, the composition scheme dealer should satisfy the following simple prerequisites
By following below mentioned steps, one can easily file the return in Form GSTR-4-
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
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-
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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