GSTR-4 is an annual GST return to be filed by the taxpayers who have opted for composition scheme under GST.
Updated on 27 May 2022: As per new GST Notification 7/2022– Late fee waived on GSTR-4 of FY 2021-22 from the 1st May, 2022 till 30th June, 2022.
Updated on 1st June 2021: Due date of GSTR-4 is further extended to 31st July 21 for FY 20-21 from 31st May 21
Due date of GSTR-4 is extended to 31st May 21 for FY 20-21 from 30th Apr 21 via GST Notification 10/2021
CBIC issues notification to extend the last date for filing return by composition dealer in GSTR-4 for FY 2019-20 to October 31, 2020.
An offline (excel-based) tool has been made available to the taxpayers to file GSTR-4 (Annual Return) on the GST portal.
What is GSTR 4 Return? Frequency of GSTR 4 Return – Quarterly or Annual?
GSTR-4 Return is a statement of inward and outward supplies of a composite taxpayer filed annually (earlier quarterly)
GSTR 4 was a quarterly return until the Financial Year 2018-19. However by Third Amendment, 2019 to CGST Rules 2017, annual return GSTR-4 was introduced. As per the GST Notification 21/2019 dated 23rd April 2020, GSTR-4 Quarterly has now been replaced by CMP-08 (filed quarterly) for the taxpayers opting for Composition Scheme under GST for the FY 2019-20, and GSTR-4 has been made as the annual return to be filed on 30th April succeeding the closing Financial Year.
Hence, any composite taxpayer filing GST Return for the FY 2017-18 or FY 2018-19 needs to file GSTR-4 for every quarter and GSTR 9A annually. However, from FY 2019-20 and FY 20-21, the taxpayers need to file CMP-08 every quarter and GSTR-4 annually.
Who should file form GSTR-4?
Form GSTR 4 return filing is mandatory for all composition taxpayers. It also covers the special composition scheme notified for the service providers vide the CGST (Rate) notification number 2/2019 dated 7th March 2020 with effect from FY 2019-20. This includes:
- Taxpayers who have opted for composition scheme since registration and have never opted out subsequently;
- Taxpayers who have opted in for composition scheme before starting of any financial year since GST was introduced;
- Taxpayers who have opted in for composition but subsequently opted out any time during the year.
Persons who are not eligible to file GSTR-4 are:
- Non-resident Taxable Persons
- Taxpayers required to collect TCS
- Taxpayers required to deduct TDS
- Input Service Distributors (ISD)
- The Taxpayers who are liable to deduct TDS
- Casual Taxable Person
Pre-requisites to file GSTR-4 – Annual Return
- If a dealer has registered under GST and has opted for composition scheme for even a day during the financial year then he needs to file GSTR 4 annually.
- The registered taxpayer must have filed all Form CMP-08 quarterly statements as per the government norms.
GSTR-4 due date
The due date for filing GSTR 4 is 30th of the month succeeding the financial year for which the composite taxpayer is filing the annual return.
(Earlier, when GSTR-4 was a quarterly return, the GSTR-4 return was to be filed on or before the 18th day of the month succeeding the quarter.)
For the financial year 2019-2020, the due date for GSTR-4 Annual Return was 30th April 2020, However,
- The GSTR-4 due date has been extended to 15th July 2020 vide GST Notification No. 34/2020-Central Tax dated 03rd April 2020.
- This has been further extended to 31st August 2020 via GST Notification 59/2020-Central Tax dated 13th July 2020.
- This has been further extended to 31st October 2020 via GST Notification 64/2020-Central Tax dated 31st August 2020.
- Form GSTR 4 once filed cannot be revised.
- Taxpayers have to pay a late fee of Rs. 200 per day for filing of Form GSTR-4 (Annual Return) after the due date.
- The maximum late fee that can be charged cannot exceed Rs. 5,000.
How is GSTR-4 Annual Return different from GSTR-4 Quarterly Return?
GSTR 4 –annual returns is different from GSTR-4 quarterly returns.
GSTR 4 (Quarterly) is for composition taxpayers but is applicable up to tax period ending on 31st March 2019.
Now, composition taxpayers have to file CMP 08, quarterly and form GSTR 4, annually.
GSTR 4 format – Annual Return
The Form GSTR-4 Annual Return format was issued vide GST notification No. 31/2019 dated 28/06/2019
The revised annual Form GSTR-4 is divided into nine sections, explaining each section below:
Table 1- 3:
- GSTIN – The GSTIN number will get auto-populated
- Name – Legal name and trade name (if any) will get auto-populated
- Aggregate Turnover Details – ARN number, Date and aggregate turnover will get auto-populated
Table 4 to capture information on a consolidated basis rate-wise and GSTIN-wise. It shows the inward supplies including supplies on which tax is to be paid on reverse charge. It has 4 sections – 4A, 4B, 4C, 4D.
4A – Details to be provided regarding all supplies received from a registered supplier (interstate and intrastate) on which reverse charge mechanism (RCM) is NOT applicable.
4B – Details to be provided regarding all supplies received from a registered supplier (interstate and intrastate) on which RCM is applicable.
4C – Details to be provided regarding all supplies received from an unregistered supplier (interstate and intrastate) supplies.
4D – Details to be provided regarding all import services on which tax is payable due to applicability of RCM.
Table 5 to capture details (and adjustments thereof) of Outward Supplies (including Exempt Supplies) and inward supplies attracting reverse charge including import of services. It is basically the Summary of self-assessed liability as per Form GST CMP-08. All the details in this table get auto-populated from Form GST CMP-08.
Details to be provided regarding all inward supplies and outward supplies that attract reverse charge tax rate wise plus total taxable value. The IGST, CGST, SGST and Cess amount will get auto-populated.
Details of all the TDS/TCS credit received from a supplier/ e-commerce personnel gets auto-populated. GSTIN of the deductor, gross invoice value and the total amount of TDS deducted needs to be mentioned by the taxpayer.
- Type of tax – mentioned
- Tax amount which is to be paid: Auto-populated from Table 6 above
- Tax amount already paid: Auto-populated from CMP-08
- Balance Tax to be paid: The difference of 1 and 2
- Interest payable and paid: Taxpayer must provide details
- Late fee payable and paid: Taxpayer must mention the actual amount
In Table 9, the taxpayers are given a provision to claim a refund in case of excess tax paid. The amount of refund needs to be divided into tax, interest, penalty, fee and others.
Note: The taxpayers are required to sign the form for verification purposes.
Filing Form GSTR-4:
Log-in to your GST portal dashboard. Click on Services > Returns > Annual Return >Select Financial Year > Search > GSTR 4> FILE THE RETURN.
Update on 22 July, 2021:
Dealing with Negative Liability in GSTR 4
- If there is no liability to be paid during the year, the liability paid through Form GST CMP-08 shall move to a negative liability statement and the same excess amount can be utilised to pay the liability of future tax periods.
- If table 6 of GSTR-4 has not been filled due to oversight or any other reason, a ticket will be raised to nullify the amount available in the negative liability statement.
Post filing GSTR-4:
- ARN is generated if the taxpayer has successfully filed the form.
- A supporting SMS and Email is sent to the registered mobile number of the authorized signatory.
- Electronic Cash Ledger (ECL) and Electronic Liability Register (ELR) Part-I will be updated.
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