How to file GSTR-4 Annual return for Composition Taxpayer under GST

GSTR-4 is an annual GST return filed by composition taxpayers. This guide explains the online filing process step-by-step, including prerequisites, deadlines, penalties, and common issues. Learn how to file GSTR-4 online easily and avoid mistakes or penalties.

What is GSTR-4?

GSTR-4 is a type of GST return that must be filed by taxpayers who have chosen the Composition Scheme under GST. This scheme is for small businesses whose turnover is within a certain limit and who want to pay GST at a fixed rate.

From Financial Year (FY) 2019-20, GSTR-4 is to be filed annually (once a year), not quarterly. However, taxpayers still need to pay taxes quarterly using Form CMP-08. GSTR-4 contains details of Purchases, Sales (if any), Taxes paid under the composition scheme and Summary of CMP-08 filed. Once filed, GSTR-4 cannot be revised.

Latest Updates on GSTR-4

a. June 22, 2024 – 53rd GST Council Meeting

• The due date to file GSTR-4 has been extended from April 30 to June 30 for all future years starting FY 2024-25.

b. March 31, 2023 – Amnesty Scheme

• Taxpayers who failed to file GSTR-4 for previous years (2017 to 2022) were given relief:
  • Late fee reduced to Rs. 500 (Rs. 250 CGST + Rs. 250 SGST).
  • If it was a Nil return, there was no late fee.

Who Should File GSTR-4?

The following taxpayers must file GSTR-4:

• Those registered under GST Composition Scheme during any part of the financial year.
• Taxpayers who opted out of the scheme during the year.
• Taxpayers whose registration got cancelled but had composition scheme status before that.

Even if you have no business activity, you are still required to file Nil GSTR-4.

When to File GSTR-4?

GSTR-4 must be filed once a year, and the due date is now 30th June following the end of the financial year. For example:

• For FY 2024-25, the due date is 30th June 2025.

Penalty for Late Filing

If GSTR-4 is not filed on time, the taxpayer is required to pay a late fee:

• Rs. 200 per day (Rs. 100 CGST + Rs. 100 SGST).
• Maximum penalty:
  • Rs. 5,000 for normal returns.
  • Rs. 500 for Nil returns (as per amnesty schemes or notifications).

Prerequisites Before Filing GSTR-4

Before filing, ensure the following:

• Taxpayers are registered under the Composition Scheme.
• All CMP-08 forms for the financial year have been filed.
• Information about the turnover of the previous financial year is available.

Step-by-Step Guide to File GSTR-4 Online

Let’s now go through each step of the GSTR-4 filing process.

Step 1: Login to the GST Portal

• Visit: www.gst.gov.in
• Login using your Username and Password.

Step 2: Navigate to Annual Return

• Go to: Services > Returns > Annual Return
• Click on File Annual Returns.

Step 3: Select Financial Year

• Choose the financial year (e.g., 2024-25) for which you want to file GSTR-4.

Step 4: Click ‘Prepare Online’

• Under GSTR-4, click the ‘Prepare Online’ button.
• Carefully read the instructions.

Step 5: Provide Turnover Details

• Enter aggregate turnover of the previous financial year.
• If there is no turnover, enter “0”. Do not leave the field blank.
• Click ‘Save’.

Step 6: Filing Nil GSTR-4 (If Applicable)

• If you have no purchases or sales, tick the ‘File Nil GSTR-4’ box.
• Click ‘Proceed to File’. You will be taken to the final step.

Step 7: Fill Tables (If Not Nil)

If you are filing a normal return, fill in the following tables:

(Full explanation in next section.)

Step 8: Preview and Make Payments

• Click ‘Proceed to File’.
• Preview return in PDF or Excel.
• Make any pending payments using:
  • Electronic cash ledger
  • Create a challan for additional payment

Step 9: File the Return

• Tick the declaration.
• Choose Authorized Signatory.
• Click ‘File with DSC’ or ‘File with EVC’.
• You will get an ARN number and confirmation via email/SMS.

Explanation of Tables in GSTR-4

Table 4A: Inward Supplies (from registered suppliers – normal)

• Add GSTIN to the supplier.
• System auto-fills supplier name and place.
• Enter taxable value and GST rate.

Table 4B: Inward Supplies (from registered suppliers – reverse charge)

• Add purchases where reverse charge applies.
• Same process as 4A.

Table 4C: Inward Supplies (from unregistered suppliers)

• Add supplier name or PAN (optional).
• Select reverse charge if applicable.
• Add value and GST rate.

Table 4D: Import of Services

• Enter imported services where IGST was paid.
• Fill taxable value and GST rate.

Table 5: CMP-08 Summary

• This is auto-populated.
• Shows quarterly tax payments.

Table 6: Outward Supplies and Reverse Charge Summary

• Enter details of sales made by the taxpayer (if any).
• Tax rate-wise breakup: 0%, 1%, 2%, 5%, 6%.

Table 7: TDS/TCS Credit

• View any TDS or TCS credit received.
• This is auto-populated and not editable.

Filing Nil GSTR-4

Conditions for Nil Return:

• No outward supplies (sales).
• No inward supplies (purchases).
• No other tax liability.
• All CMP-08 returns filed as Nil.

Steps to Filing Nil GSTR-4:

1. Select ‘File Nil GSTR-4’.
2. Click ‘Proceed to File’.
3. Sign with EVC/DSC and submit.

No late fee if you file Nil return before the due date.

Common Issues and Their Solutions

a. Error: “Records under processing”

• Wait for a few minutes and refresh the page.

b. Error while uploading data

• Check internet connection.
• Avoid special characters.
• Try a different browser.

c. Cannot see saved entries

• Use the Search or Records per Page option.

d. File is not submitting

• Make sure all mandatory tables are filled.
• Check your balance in the cash ledger.
• Use the correct Digital Signature Certificate (DSC) or OTP for EVC.

Conclusion

GSTR-4 is an important return for composition taxpayers under GST. It summarizes your entire year’s tax information. Even though it’s an annual return, you must still file quarterly CMP-08 forms. If you are eligible to file a Nil return, the process is very quick.

Filing GSTR-4 online is now simple, and with this step-by-step guide, you can ensure timely and accurate submission. Don’t forget to download and save a copy of your filed return for future reference. And remember, timely filing avoids penalties and keeps your GST compliance clean.

FAQs related to File GSTR-4 Online

Q1. Do I need to file GSTR-4 if I cancelled my GST registration mid-year?

Yes, if you were under the composition scheme during any part of the financial year, GSTR-4 must be filed.

Q2. What if I made no sales or purchases?

You can file a Nil GSTR-4.

Q3. Can I revise GSTR-4?

No, GSTR-4 cannot be revised after it is filed.

Q4. What if I missed CMP-08 filing?

You must first file all CMP-08 forms before filing GSTR-4.

Q5. Is Cess auto-calculated?

No, Cess must be manually entered, even if tax is auto-calculated.

Q6. Can I download my filed return?

Yes, you can download the PDF or Excel version of GSTR-4 after submission.

The Author is an Income tax, TDS, Accounting and GST practitioner and can be contacted at 9024915488.