GSTR-4: Due Date, Format, Filing Return & Eligibility

GSTR 4 was levied via the third amendment of the GST Act, 2017. A GSTR-4 is an annual return that must be filed by taxpayers who have signed up for the GST composition scheme. This is a special taxation scheme tailor-made for small to medium ventures. It significantly reduces the expense of small businesses by allowing them to pay GST at a low fixed rate.

GSTR 4 is an yearly return filed by eligible taxpayers falling under the GST Composition Scheme with the details of their business transactions. It comprises details of all their supplies, sales, and paid compound tax during the tax period.

The following taxpayers are required to file GSTR-4 (Annual Return):

• Those signed up for the composition scheme during registration and never opted out.
• Enrolled for the taxation scheme before the fiscal year.
• Joined the scheme but subsequently pulled himself/herself out during the period.

The following persons are not required to file GSTR-4 (Annual Return):

• Regular taxpayers who have not selected to be in the GST composition scheme
• Non-resident taxable persons
• Input service distributor
• Casual taxable person
• UIN holder
• Person required to perform TDS u/s 51 and 52
• OIDAR

Being an annual return, a dealer must file GSTR 4 by 30th April of the succeeding fiscal year. Hence, if a composition vendor files a return for FY 2023-2024, the GSTR-4 filing due date will be 30th April, 2024.

Filing GSTR-4 after the due date incurs certain penalties. Recently, the late fee has been revised to make it feasible for nationwide composition dealers. A penalty of ₹50 is imposed per day from the due date up to a maximum of ₹2000. For nil liabilities, maximum late fee applicable for late filing of GSTR-4 is ₹500.

Since now you have a clear understanding of its format, ensure to keep a note of the following data for an untroubled GSTR 4 filing process:

• B2B and B2C invoices
•   GSTIN of customers
• Details of supply places
•   GST rate and the total value of CGST, IGST, SGST and Cess
• Summary details as per HSN
• Debit and credit note
• Taxable amount
• Inter and intra-state sales figures.

A dealer has to meet the following conditions to seamlessly file GSTR-4:

• Submitted CMP-08 forms for all quarters of the given fiscal year.
• Noted the accumulated turnover amount of the former financial year.

Following is a comprehensive lowdown of the virtual GSTR-4 filing process. Let's get started:

**Step 1:** Visit the GST portal and sign in using your credentials.
**Step 2:** Go to ‘Service’, ‘Return’, and then ‘Annual Return’ OR select the ‘Annual Return’ option from the dashboard itself (as shown below).

Apart from avoiding late fees, there are other benefits of filing the GSTR 4 form within the due date. Here are some of them:

The GST composition scheme offers a fixed rate of GST, making the evaluation easy for taxpayers. The rates depend on different business types. Here are the details: