GSTR-4 Filing: Due Date, Format, Late Fees, Eligibility & Rules

Understanding the annual compliance requirements for composition dealers is necessary for maintaining smooth business operations. GSTR-4 is the key annual return for those who have opted for the Composition Scheme under GST. This guide covers everything you need to know about GSTR-4, including filing deadlines, eligibility criteria, late fees and the step-by-step process to file it correctly.

What is GSTR-4?

GSTR-4 is the annual GST return for taxpayers under the Composition Scheme. These taxpayers pay tax at fixed rates on turnover without claiming input tax credit. Unlike regular monthly or quarterly returns like GSTR-3 B, GSTR-4 consolidates yearly inward and outward supplies.

The form simplifies compliance for small businesses by replacing earlier quarterly filings. Taxpayers report total supplies, tax liabilities and payments made via CMP-08 forms. This shift reduces paperwork while ensuring accurate yearly summaries.

Also Read: GSTR 1 Filing: Due Date, Format, Late Fee & Eligibility

Who Should File GSTR-4: Eligibility and Thresholds

All registered taxpayers who have opted for the Composition Scheme are required to file the GSTR-4 annual return. This includes:

• Composition Dealers: Businesses dealing in goods with an aggregate annual turnover of up to ₹1.5 Crore.
• Special Category States: For dealers in North-Eastern states and Himachal Pradesh, the turnover limit is ₹75 Lakh.
• Service Providers: Taxpayers who have opted for the Composition Scheme for services (under Notification No. 2/2019) with a turnover of up to ₹50 Lakh.

However, certain taxpayers are not eligible to file GSTR-4, including Non-Resident Taxable Persons, Input Service Distributors (ISD), Casual Taxable Persons and those collecting TCS or deducting TDS.

GSTR-4: Due Date and Filing Frequency

The GSTR-4 due date is strictly annual. The return must be filed by 30th April of the following financial year. For example, the FY 2023-24 filing deadline is 30th April 2024. However, the government may occasionally extend deadlines via notifications, such as the recent extension of the FY 2024-25 deadline to 30th June (as per recent updates).

It is important to note that you cannot file GSTR-4 for a financial year if you have not filed returns for previous periods. A recent GSTN advisory also highlights a restriction that prevents returns from being filed after three years from the due date.

Also Read: Income Tax Return - New Tax Regime vs. Old Tax Regime

How to File GSTR-4 Online: Step-by-Step Process

Filing the GSTR-4 annual return can be done easily on the GST portal. Follow these steps to complete the process:

1. Login: Go to the GST Portal and log in with your credentials.
2. Navigate: Click on Services > Returns > Annual Return.
3. Select Year: Choose the relevant Financial Year and click 'Search'.
4. Open Form: Click 'Prepare Online' in the GSTR-4 box.
5. Enter Turnover: Enter the 'Aggregate Turnover' of the previous financial year.
6. Fill Tables: Complete the relevant tables (Tables 4 to 7) with details of inward and outward supplies.
7. Auto-Populated Details: Verify details in Table 5 (Summary of Self-Assessed Liability), which flows from your CMP-08 filings.
8. Compute Liability: Click 'Compute Liabilities' to calculate tax, interest and late fees.
9. Payment: Utilize the cash ledger to pay any remaining liabilities.
10. File: Select the declaration checkbox, choose the authorized signatory and click File GSTR-4. You can file using a DSC (Digital Signature Certificate) or an EVC (Electronic Verification Code).

Understanding the GSTR-4 Format and Key Sections

The GSTR-4 format is structured into multiple tables to capture specific financial data. Understanding these tables helps in accurate reporting.

Tables 1-3: Basic Information

These sections are auto-populated upon login. They include the GSTIN, Legal Name, Trade Name and the Aggregate Turnover of the previous financial year (which you must enter manually if not populated).

Table 4: Inward Supplies

This table captures details of inward supplies (purchases) from registered suppliers, inward supplies attracting reverse charge and supplies from unregistered dealers.

Table 5: Summary of Liability

This section is auto-filled based on the CMP-08 statements filed during the four quarters. It summarizes the tax liability declared throughout the year.

Table 6: Outward Supplies & Reverse Charge

Here, you must report the details of outward supplies (sales) made during the year. It also includes inward supplies that attract reverse charge tax liability.

Table 7: TDS/TCS Details

This table shows the TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) credits received from suppliers or e-commerce operators.

Table 8: Tax, Interest & Late Fee Payable

This is the consolidated view of the tax amounts payable and paid. It allows you to see if any additional tax or interest is due after adjusting the amounts already paid via CMP-08.

Table 9: Refund Claims

If excess tax has been paid, this table allows taxpayers to claim a refund of the excess amount from the electronic cash ledger.

GSTR-4: Late Fees and Penalties

Failure to file the GSTR-4 form within the designated timeframe incurs a late fee. The specific charges are:

1. Normal Liability: ₹50 per day (₹25 CGST + ₹25 SGST).
2. Nil Liability: ₹20 per day (₹10 CGST + ₹10 SGST).
3. Maximum Cap: The maximum late fee is capped at ₹2,000 for returns with tax liability and ₹500 for Nil returns.

Apart from late fees, an interest of 18% per annum is charged on the outstanding tax liability. Continued non-filing can lead to penalties and notices from the GST department.

Also Read: What is CGST (Central Goods and Services Tax) in India

Recent Updates & GSTN Notifications for GSTR-4

Staying up to date with the latest GSTR-4 updates is crucial for compliance.

1. 3-Year Restriction: Starting from 1st July 2025, taxpayers will not be allowed to file GSTR-4 if the due date has passed by more than 3 years.
2. Due Date Changes: For FY 2024-25, the GST Council has recommended extending the due date to 30th June. Always check the GST portal for the notification of a specific year.
3. Negative Liability: The portal now handles negative liability in GSTR-4 more efficiently, allowing adjustments if excess tax was paid in CMP-08.

Differences Between GSTR-4, GSTR-4A and CMP-08

It is common to get confused between the different forms associated with composition dealers.

GSTR-4A helps you cross-verify the purchase details uploaded by your suppliers against your own records before you file the annual GSTR-4.

Tips to Avoid Common Mistakes When Filing GSTR-4

To ensure a hassle-free filing experience, keep these GSTR-4 filing tips in mind:

1. Reconcile Data: Always match the data in your books with that in CMP-08 and GSTR-4A before filing.
2. Verify Turnover: Ensure the turnover declared matches your financial statements. Incorrect turnover can impact your eligibility for a Business Loan (Note: Loan approval is subject to credit score and lender underwriting).
3. Check Cash Ledger: Ensure you have enough balance in the Electronic Cash Ledger to pay any differential liability.
4. File on Time: Avoid waiting for the last day to prevent server issues and late fees.
5. Freeze Data: Once filed, GSTR-4 cannot be revised. Double-check all entries.
6. Financial Planning: If you are planning expansion, maintaining accurate GST records is vital for loan approvals. You can use a Business Loan EMI Calculator to plan your finances better (Note: The calculator provides estimates only; final APR and fees are determined by the lender).

Final Thoughts

GSTR-4 filing remains essential for Composition Scheme taxpayers to summarise their annual GST transactions accurately. Meet the GSTR-4 due date of 30th June to avoid GSTR-4 late fee charges up to ₹2,000. The GSTR-4 annual return consolidates quarterly CMP-08 payments and inward and outward supplies, ensuring compliance without requiring input tax credit claims. Timely submission prevents penalties, registration issues and e-way bill restrictions. Businesses maintain smooth operations by reconciling data early and verifying turnover limits. Stay updated on GSTN notifications for three-year filing windows. Proper GSTR-4 management supports financial stability and growth.

Apply now for a Business Loan.

FAQs

Q.1. What happens if I miss the GSTR-4 filing deadline?

A. If you miss the deadline, you will be liable to pay a late fee of ₹50 per day (₹20 for Nil returns), subject to a maximum cap. Additionally, you will be charged 18% interest per annum on the outstanding tax amount.

Q.2. Is GSTR-4 mandatory for all Composition Scheme taxpayers?

A. Filing GSTR-4 is mandatory for all registered taxpayers who have opted for the Composition Scheme or the special Composition Scheme for service providers, even if there was no business activity during the year (in which case a Nil return must be filed).

Q.3. Can I file GSTR-4 offline or via third-party software?

A. You can file GSTR-4 using the offline utility provided on the GST portal. Alternatively, you can use approved third-party GST software, which often offers better reconciliation features than the portal itself.

Q.4. What documents are required to file GSTR-4 correctly?

A. You primarily need your financial statements, summary of inward supplies (purchase invoices), summary of outward supplies (sales figures), details of tax paid via CMP-08 and login credentials for the GST portal.

Q.5. How do I calculate the late fee for GSTR-4?

A. The system automatically calculates the late fee when you file the return. It is charged based on the number of days the payment is delayed after the due date. You must pay this fee in cash before you can submit the return.

Q.6. Can I claim input tax credit in GSTR-4?

A. Composition dealers are not eligible to claim the Input Tax Credit (ITC). Therefore, you cannot claim ITC in GSTR-4. You must pay tax at a flat rate on your turnover from your own pocket.

Q.7. Can you revise GSTR-4 after filing?

A. The GST system does not allow revision of GSTR-4 once it has been filed. It is crucial to verify all details, reconcile them with GSTR-4A and ensure accuracy before clicking the final submit button.

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