Easy Guide to GSTR 4 with Step by Step Online Return Filing Procedure

What is GSTR 4?

The GSTR-4 form is an annual return form for those taxpayers who have opted  GST Composition scheme in the new indirect tax regime. Under the GST composition scheme, taxpayers will be required to file only one return in every financial year.

Also, the taxpayers will have to file CMP-08 for the payment in every quarter of the year. The due date for each CMP-08 filing is the 18th of every succeeding quarter. Read the CBIC notification.

• Who Should File GSTR 4
• GSTR 4 Form Due Date
• Interest on Late Payment
• GSTR 4 Important Terms
• GSTR 4 Updates on Council Meeting
• Simple Process to File GSTR 4
• GSTR 4 General Queries
• GSTR 4 Filing By Gen GST Software

Latest Update

• The 53rd GST Council updated the GSTR-4 due date from 30th April to 30th June for the FY 2024-25 onwards. View more

Free Demo of GSTR 4 Annual Return FIling Software

Major Points to File GSTR-4 (Annual Return)

• File button is enabled only if:
  1. No additional cash is required to be paid for liabilities
  2. You have clicked on the declaration checkbox
  3. You have selected authorised signatory details from the drop-down list
• The excess amount deposited through GST CMP-08, available in the negative liability statement will also get adjusted towards liabilities if any
• If the available balance in the electronic cash ledger is less than the amount required to offset the liabilities, you can directly create a challan by clicking on the ‘Create Challan‘ button.
• Tax and late fees are auto-drafted in Table-8 but interest is user input. Liabilities can be discharged only through an electronic cash ledger.
• The details of inward supplies (from Table 4B, 4C, and 4D for each tax rate) will be auto-drafted in Table 6 only after the Taxpayer has clicked on the ‘Proceed to file’ button. Before that, the balance will be displayed as ‘0’ (zero)
• Once you enter outward supply details in Table 6 and click the “Proceed to file” button, liability on the RCM basis is auto-populated from details entered in Tables 4B,4C, and 4D. Thereafter, Table 6 shows your total tax liability
• The details of outward supplies in Table 6 (Row 12-16) of GSTR-4 have to be entered manually by the taxpayer.
• The summary of self-assessed liability is auto-populated in Table-5 of the GSTR-4 Annual Return on the basis of filed Form CMP-08 & is non-editable.
• The tax amounts in Table-4 of GSTR-4 are auto-calculated on the basis of the values entered in the Taxable Value and Tax Rate fields. However, the tax amount is editable. The CESS is to be entered by the taxpayer.
• The aggregate turnover is required to be entered for the last year and if in case the business did nil transactions or turnover in the last FY or not registered it can put ‘0’ zero
• The annual GSTR 4 return filing will get activated once the taxpayer has finished filing of all the quarters of CMP-08 of the given financial year

Annual Return Form GSTR-4 Available on the GST Portal

The government has decided to let the taxpayers, assesses, and businesses file GSTR 4 on an annual basis. This has been done due to the demand of the community. The form is also available on the portal which has further relaxed the assess and taxpayers in finding and filing the form as per their convenience.

Free Software Demo for Filing GSTR 4 Form

Salient Features of GSTR 4 Return Form

• GSTR 4 Returns will file on an annual basis for compounding Taxable persons. The last date for filing the GSTR- 4 (CMP-08) payment form is the 18th of the month following the quarter. GSTR 4 (CMP-08) returns can be filed on 18th April, 18th July, 18th October, and 18th January and so forth
• GSTR-4 Form is filed by all the taxpayers who registered under the composition scheme
• Business entities registered under the composition scheme will be required to pay taxes at fixed rates quarterly without availing of input tax credit facility
• The taxpayer will be required to show the total value of supplies made in a specific period and tax paid at the composition rate
• The taxpayer will be required to insert invoice-level purchase details for the purchases from normal taxpayers, which will be automatically updated GSTR 4A Form from the supply invoice uploaded by the opposite party in GSTR 1

Who Should File GSTR 4 Form

All the composite registered taxpayers are required to file the tax return.

GSTR 4 Annual Filing Due Dates

Period	Due Date
Annual Return FY 2024-25	30th June 2025 | View more
Annual Return FY 2023-24	30th April 2024
Annual Return FY 2022-23	30th April 2023
Annual Return FY 2021-22	30th April 2022 | Note: 47th GST Meet – “To extend the waiver of late fee under section 47 for the delay in filing FORM GSTR-4 for FY 2021-22 by approximately four more weeks, i.e. till 28.07.2022 (The existing waiver is for the period from 01.05.2022 till 30.06.2022)”
Annual Return FY 2020-21 (Revised)	31st August 2021

Free Software Demo for Filing GSTR 4 Form

GSTR 4 Interest on Late Payment

GST Council clearly stated in acts that if a person has not paid the taxes before the due dates, then the GST Council has strict rules and regulations to accommodate it with an 18 % interest rate per year. The interest rate is applied to the number of days the taxpayer missed out. To look into the act clearly, you can read the information from point 50 of chapter 10 here: https://cbec-gst.gov.in/CGST-bill-e.html

If we take the illustration of it, a person missed out on the due date of yesterday, then the taxpayer has to pay 1000*18/100*1/365 = Rs. 0.49 for one day and the calculation varies on payable tax and the total missed out days.

In case if a taxpayer does not file his/her return within the due dates mentioned above, he shall have to pay a late fee of Rs. 50/day i.e. Rs. 25 per day in each CGST and SGST (in case of any tax liability) and Rs. 20/day i.e. Rs. 10/- day in each CGST and SGST (in case of Nil tax liability) subject to a maximum of Rs. 5000/-, from the due date to the date when the returns are actually filed.

GST CMP 08 is a quarterly return form that must be filed by the composition taxpayers after the end of each quarter. The due date for filing GST CMP 08 return online is the 18th of the month after a particular quarter. GSTR 4 is an annual return form, for which the due date is 30th April after a particular financial year.

Important Terms Frequently Used in GSTR 4

• GSTIN – Goods and Services Taxpayer Identification Number
• UIN – Unique Identification Number
• UQC – Unit Quantity Code
• HSN – Harmonised System of Nomenclature
• SAC – Services Accounting Code
• POS – Place of Supply of Goods and Services
• B2B – From one registered person to another registered person
• B2C – From registered person to unregistered person

Free Software Demo for Filing GSTR 4 Form

HSN: Harmonised System of Nomenclature (HSN code is filled in case of the supply of goods)

• A taxpayer will be required to provide the aggregate turnover of the immediately preceding financial year and the first quarter of the current financial year.
• The taxpayer will be required to furnish all the information only in the first year and it will be automatically updated in the succeeding years.

Let us Understand the Step-by-Step Guide Filing Procedure of GSTR 4

GSTR 4 return form is divided into 13 sections but it is not necessary to fill all these sections. Some of the details of sections in GSTR 4 form are given below:-

Part 1 to Part 3 – General Information

• GSTIN:- Every Taxpayer gets a state-wise PAN-based 15-digit Goods and Services Taxpayer Identification Number (GSTIN) from the Government. It must be noted that the identification of the taxpayer will be automatically filled in at the time of filing the return in the coming future
• Legal Name of the Registered Person and Trade name (if any):- The taxpayer name will automatically fill the time of filing the returns at the GSTN portal
• Annual Turnover in the preceding Financial Year:- A taxpayer will be required to fill in all the information only for the first time of filing and after then it will be automatically updated in the succeeding years

Part 4 – Inward supplies including supplies on which tax is to be paid on reverse charge

• Inward supplies received from a registered supplier (other than supplies attracting reverse charge), the information will be auto-populated from the provided by the supplier in GSTR-1 and GSTR-5. Inward supplies received from a registered supplier (attracting reverse charge- this information will be automatically filled from the information provided by the supplier in GSTR-1, inward supplies received from an unregistered supplier and Import of service. It must be noted that all inward supplies to composition will be auto-filled here

Note: FinMin tweeted that the composition taxpayers can leave purchase invoice details in table number 4 part 4A.

Part 5 – Amendments to details of inward supplies furnished in returns for earlier tax periods in Table 4 [including debit notes/credit notes and their subsequent amendments]

• It will include amendment information mentioned in earlier tax periods and also original amended debit or credit notes received, rate-wise. The place of supply is to be mentioned in case the same is different from the location of the recipient. While providing the information of the original debit /credit note, the details of the invoice must be provided in starting three columns, whereas, providing the revision of the details of the original debit /credit note shall be provided in the first three columns of this Table

Part 6 – Tax on outward supplies made (Net of advance and goods returned)

• Under this section, you will provide the details of a tax rate, total turnover, out-of-turnover reported and the composition tax amount including both central tax & State/UT tax.

Part 7 – Amendments to Outward Supply details furnished in returns for earlier tax periods in Table No. 6

• Under this section, you will be able to rectify the incorrect details you provided in Table 6 in previous returns, without turnover reported details additionally added.

Note:

• In the GST council meeting, the authorities decided to revise the GSTR 4 filing form with some inclusion of terms in clauses 6 & 7. The revised columns have been added to the final form and are mentioned in red text.

Part 8 – Consolidated Statement of Advances paid/Advance adjusted on account of receipt of supply.

• Under this, details of the advance paid relating to reverse charge supplies and if you paid taxes on them, adjustments against invoices issued to be mentioned in Table 8

Part 9 – TDS Credit received

• TDS (Tax Deduct at Source will be auto-filled in Table 9

Part 10 – Tax payable and paid

• Under this section, you will be to provide the details of Integrated Tax, Central Tax, State/UT Tax, and cess tax amount payable as well tax amount paid

Part 11 – Interest, Late Fee payable and paid

• This section is for those taxpayers who have not paid their taxes timely

Part 12 – Refund claimed from Electronic cash ledger

• If in case the tax liability of the composition dealer is below the TDS deducted, he can get a refund of the balancing amount. The amount which is available for the refund will be auto-filled under this section

Part 13 – Debit entries in cash ledger for tax /interest payment [to be populated after payment of tax and submissions of return]

Free Software Demo for Filing GSTR 4 Form

GSTR 4 Return Filing General Queries