GSTR 4 Return Filing - Due Dates, Eligibility and Procedure

GSTR 4 is an annual return form specifically for small businesses registered under the Composition Scheme. It allows taxpayers to make quarterly payments and a single annual return. This return simplifies monthly filings for taxpayers and saves time in the filing process. So, GSTR-4 helps them to follow the rules without having to file detailed monthly reports. It also helps businesses to avoid penalties, maintain accuracy and handle GST obligations. In this piece of writing, you will get guidance on GSTR 4.

What is GSTR 4?

GSTR 4 refers to an annual GST return. This return should be filed by a taxpayer who has opted for the Composition Scheme. They can file it once a year, than regular GST taxpayers who file monthly or quarterly returns in Form CMP-08. They must also submit Form GSTR-4 by the 30th day of June, following the financial year.

What is the due date of GSTR 4?

A composite taxpayer must file GSTR 4 on an annual basis. The due date is the 30th of June for filing GSTR 4, following the relevant financial year.

For example, the GSTR 4 can be due by 30th of June 2025. This change was announced in the CGST Notification 12/2024 on 10th July 2024. Until the year 2018-19, the deadline was the 18th of the month after the quarter ended.

Thus, a taxpayer cannot file GSTR 4 after three years from the due date. The change will start on the GST portal from the July 2025 tax period, according to the GSTN notice from June 7, 2025.

Who is applicable for GSTR 4?

A taxpayer who has opted for the composition scheme must file GSTR 4. There is no specific turnover limit for filing GSTR 4. It includes the special rules for service providers mentioned in the CGST (Rate) notification number 2/2019 from March 7, 2020. This starts from the financial year 2019-20.

Who is not eligible to File GSTR 4?

Listed below are the categories that are not eligible to file GSTR 4:

1. Non-Resident Taxable Persons
2. Casual Taxable Persons
3. ISD (Input Service Distributors)
4. TDS/TCS deductors and collectors
5. OIDAR service providers
6. UIN holders.
7. Regular taxpayers who are not opted for the composition scheme during the year

Turnover Limit of GSTR 4

The GSTR 4 turnover limit depends on the threshold limit for composite taxpayers.

The GST Composition scheme is applicable for manufacturers, traders, and restaurants (excluding alcohol). It has an annual turnover is not more than Rs. 1.5 crore in regular states and Rs. 75 lakh in special category states. In contrast, a service providers has an annual turnover of Rs. 50 lakh limit. It helps to make the tax compliance simple for small businesses.  Taxpayers  pay GST at a fixed rate on their turnover. This requires quarterly return filing for intra-state supplies.

How to File GSTR 4?

Below is the step-by-step process to file GSTR 4 online on the GST portal:

Step 1

In the first step, you must log in to the official GST portal.

Step 2

You must navigate to the "Services" option and"Return" option. Then, click on the "Annual Return" option on the dashboard.

Step 3

Next, you must select the relevant financial year. you will get this optiom under the "File Annual Return" button on the dashboard.

Step 4

Once you read the intructions on the page, click on the "Prepare Online" option.

Step 5

Next, you need to enter and fill the required details in the various sections of GSTR 4.

Step 6

Once you have entered the details, you must check your updated GSTR 4. You can check it by click on the Download GSTR-4 Summary (PDF) or Download GSTR-4 (Excel).

Step 7

In case of the tax, interest or late fee is due, you must make a payment before filing. Payment can be done through the electronic cash ledger.

Step 8

As a user, you must select the declaration checkbox. Then, choose the authorised signatory and click on the File GSTR 4 button.

Step 9

You will receive a warning message. Then, select "yes" option. You can choose file with DSC or File with DSC (Digital Signature Certificate) or EVC (Electronic Verification Code).

Thus, once you have completed these steps, the retur status will change to "Filed". You will get an Application Reference Number (ARN) and a confirmation message. These will come through SMS or email registered on the GST portal.

How to Revise GSTR 4?

GSTR-4 is a form that businesses in the Composition Scheme file it. So, once filed on the GSTN portal, it cannot be revised.

GSTR 4 Late Fees and Penalty

According to the latest update, you will be charged a late fee of Rs.50 for each day it is late, up to a total of Rs. 2,000. In case of no tax to pay, the highest late fee is Rs.500. In earlier, a late fee of Rs. 200 per day will be charged if GSTR-4 was not filed on time. The highest late fee that could be charged was Rs.5,000.

Conclusion

GSTR 4 is an essential annual return for taxpayers under the composition scheme. It is specifically for small businesses to simplify the complex monthly filings with a single yearly submission. Quarterly tax payments are made through the CMP-08 Form. Thus, this return helps to reduce compliance burden and save time. You can file this return from the GST portal. If you have any queries about it, get in touch with Online Legal India.

FAQ

Q1. What is GSTR 4?

GSTR 4 is the annual return for taxpayers who opt for the Composition Scheme. It gives a summary of their outward supplies, inward supplies (reverse charge), and tax payments for the financial year. Thus, it helps small businesses to follow tax rules. This return makes fixed tax rates on sales instead of complicated regular GST.

Q2. Who needs to file GSTR 4?

A taxpayer who have opt for the composition scheme must file GSTR 4.

Q3. Can I revise my GSTR 4 return after I file it?

No, you cannot revise your GSTR 4 return after you file it on the GST portal.

Q4. What details are required to file GSTR 4?

The details required to file GSTR 4 are:

1. You need information about the business (GSTIN and name), total sales from last year, purchases (from registered and unregistered sellers, and services from abroad), sales, and any changes.
2. You also need to include TDS/TCS credit, tax payments (through CMP-08), interest, or late fees.

Disclaimer

This article is for informational purposes only and does not constitute legal advice. Online Legal India is a digital platform. If you require legal assistance, we strongly recommend consulting a qualified lawyer or law firm.