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What is GSTR 4?

The GSTR-4 returns is the kind of returns form which is supposed to be filed by taxpayers that have opted for the composition scheme. One of the defining features of the GSTR 4 returns form is that it only needs to be filed once a year, unlike other GST returns forms. The GSTR 4 form was introduced with the intention of making the act of filing GST returns easier for the nimble Indian GST traders. 

Who Should File the GSTR 4 Annual Return Form?

Any taxpayer who has opted for the GSTR-4 composition scheme should undertake the GSTR 4 filing process. Taxpayers whose business turnover is less than ₹1.5 crores can opt for the same through the GST portal. However, there are certain types of taxpayers who cannot opt for the GST composition scheme. They are as follows:

 

  • Any supplier that is unrelated to the restaurant business.

  • A non-resident taxable person or a regular one (Whose annual business turnover is more than ₹1.5 crores).

  • Any business which is supplying goods through an e-commerce portal.

  • Paan masala and tobacco manufacturers.

  • Manufacturers of ice cream or ice cream based products.

  • Supplier of goods that are exempt from GST.

  • Supplier of inter-state goods, and

  • Supplier of goods that are non-taxable.

GSTR 4 Due Date

A taxpayer who has opted for the composition scheme will need to file their GSTR 4 form on April 30th of every month. For example, if a composite taxpayer has to file their GST returns for Financial Year 2022-23, their GSTR 4 due date will be April 30, 2023. Ideally, they must undertake the GSTR 4 filing process as soon as the financial year ends and well before the GSTR 4 last date of filing.

What is the GSTR 4 Format?

The GSTR-4 annual returns form format is made up of a total of 9 tables. They are as follows:

  • Table 1 to 3: The first three tables contain the basic details of the taxpayer. They can be found below.

Table

Details

1. GSTIN

The PAN-based 15-digit-long GSTIN of the taxpayer who is filing the return. (This section is auto-populated)

2. Taxpayer name.

The legal as well as the trade name of the taxpayer (This section is auto-populated when the taxpayer files the returns.)

3. Total turnover details

Turnover details pertaining to the previous financial year (This part will have to be filled by the taxpayer once.Thereon, this particular field will be auto-populated along with the closing balance for each form after thereafter.)

  • Table 4: This table will contain details regarding the inward supplies that the taxpayer has been a part of during the tax period, inclusive of the supplies on which tax has to be paid as per the reverse charge mechanism.

Table 4 is divided into 4 sections. All of them are as follows:

Table

Details

4A: Supplies from a supplier that is GST-registered. (Other than the ones attracting reverse charge)

Here, the taxpayer will be needed to provide details regarding all supplies that have been received from a GST registered supplier (This section will include interstate as well as intrastate supplies) on which the reverse charge mechanism will not be applicable.

4B: Supplies from a GST-registered supplier (The ones attracting a reverse charge)

In this section, the taxpayer will be required to provide information concerning all supplies that have been received from a GST-registered supplier (Inclusive of both interstate as well as the intrastate supplies) on which the reverse charge mechanism will be applicable.

4C: Supplies from a non GST-registered supplier

Out here, the taxpayer will be required to furnish details concerning all supplies that have been received from a supplier not registered with GST (This will include both interstate as well as the intrastate supplies.)

4D: Import of services

In this final part of table 4, the taxpayer will have to share details regarding all the services that have been imported and attract tax.

  • Table 5: A Summary of the Self-Assessed Liability of the Taxpayer as per Form GST CMP-08.

This particular table will include details about taxes that are paid on the outward supplies, including advance taxes paid and the taxes paid on returned goods during the tax period that the taxpayer is filing the returns for.

  • Table 6: Tax Rate-Wise Details Pertaining to Outward as Well as Inward Supplies That Attract Reverse Charge During the Tax Year.

In this section, the taxpayer will be required to furnish details concerning all the inward as well as the outward supplies that attract reverse charge as well as the GST rate applicable on it. The applicable CGST, IGST, SGST as well as the CESS amount will be auto-populated by the system in the relevant fields.

  • Table 7: TDS/TCS Credit Received

This table will contain details concerning any TDS/TCS credit that has been received from a registered supplier or an e-commerce operator. This section will be auto-populated in the table below. But, the GSTIN of the deductor, the gross value of the invoice as well as the TDS amount that has been deducted will have to be mentioned in this table by the taxpayer.

  • Table 8: Tax, Interest, Late fee Payable and Paid

Table

Details

Total payable tax amount

This particular section will get auto-populated from details mentioned in Table 6

Tax amount already that has already been paid

This particular section will get auto-populated as per the information provided in the Form GST CMP-08

Balance payable tax

This part of the table will include information concerning the difference between table 1 and 2. This section will also be auto-populated.

Interest that is payable and paid

Here, the interest payable for filing the GSTR-4 form late and the interest that has actually been paid will be mentioned.

Late fee that is payable and paid

Out here, the applicable late fee that is going to be payable for the late payment of GST and the amount which has actually been paid will be mentioned.

The taxpayer must note that the amount which is paid under the various tax heads must be mentioned separately, such as CGST, IGST, SGST as well as CESS.

 

  • Table 9: Refund That has Been Claimed From the Electronic Cash Ledger

In this section, the taxpayer can make refund claims for any excess taxes that have been paid in the past. The taxpayer can claim refunds under the sections of, interest, tax, fees, penalty as well as others.

Prerequisites for Filing the GSTR-4 Returns

The taxpayer will need to meet the following conditions for undertaking the online GSTR 4 filing procedure:

 

  • The taxpayer should have opted for the composition scheme.

  • The annual turnover of the taxpayer must be less than ₹1.5 crores. If the taxpayer is a resident of Himachal Pradesh, their annual business turnover must be less than ₹75 lakhs.

  • The taxpayer must be solely involved in intrastate trade only.

  • The taxpayer must keep track of all the imports and purchases they have made for the quarter.

How to File GSTR 4 Online?

A taxpayer can undertake the GSTR 4 filing process online by following the below-mentioned steps:

 

  • Step 1: First, the taxpayer must log on to the GST portal with their credentials.

  • Step 2: Then, they must click on the ‘Services,’ tab and then go to the ‘Returns’.

  • Step 3: Next, the concerned taxpayer must select ‘Returns Dashboard’.

  • Step 4: After that, the taxpayer must select the financial year and then the filing period.

  • Step 5: Post that, they will need to click on Quarterly Returns GSTR-4 and then select ‘Prepare Online’.

  • Step 6: When the taxpayer completes the above-mentioned step, he or she will need to answer a series of relevant questions with either a ‘Yes’ or ‘No’.

  • Step 7: After completing the above step, they will need to click on ‘Next’ to proceed.

  • Step 8: Post, the taxpayer will be taken to a page which will display the fields that they selected ‘Yes’ for. Here, they must fill in all the relevant details in each of the sections that the user sees.

  • Step 9: After doing so, the taxpayer will need to click on ‘Preview’ to view all the details submitted. It is recommended that the taxpayer must download a PDF copy of the same for future reference or personal filing purposes.

  • Step 10: Next, the taxpayer must click on ‘Proceed to File’ in order to compute the interest, late fee (If any) and the total tax obligations.

  • Step 11: After the above step, the taxpayer must file their returns and simultaneously authenticate their identity. He or she can do it either through their Digitally Signed Certificate (DSC) or an Electronic Verification Code (EVC). The taxpayer must select the option that will suit them best to proceed.

  • Step 12: Once the taxpayer has successfully completed step number 11, they will see a success message pop up on their screen as well as an Acknowledgement Reference Number (ARN) that they must make a note of. This message is a confirmation of the fact that the taxpayer has successfully completed the GSTR-4 online filing process. Shortly after, the status of the returns will be changed to ‘Filed’.

GSTR 4 Late Fees and Penalty

The applicable late fee for filing GSTR 4 annual returns that a taxpayer will have to bear will be ₹200 per day, subject to a maximum charge of ₹5,000.

Things to Keep in Mind While Filing GSTR-4 Returns

Some of the things that a taxpayer should be mindful of while filing GSTR-4 returns are as follows:

 

  • If the GSTR 4 returns are not filed on time, the taxpayer will be subjected to a late fee of ₹200 per day, subject to a maximum charge of ₹5,000. If the taxpayer is not liable to pay any tax for that period, he or she will be charged ₹20 for every day past the GSTR-4 filing due date

  • If the taxpayer fails to file GSTR-4 for a particular tax period, they will be unable to file the same for the next tax period

  • The taxpayer can use a third party software to file their GSTR 4 annual returns

  • The GSTR 4 returns cannot be revised/updated once filed

FAQs on GSTR-4

  • ✔️Is GSTR 4 filing compulsory?

    If the individual is a registered taxpayer and has opted for the composition scheme, they must compulsorily file the GSTR-4 returns, even if they are not liable to pay any tax for that particular period.

  • ✔️What is the turnover limit for GSTR-4?

    The annual business turnover limit is ₹1.5 crore. If the taxpayer is a resident of Himachal Pradesh, the turnover limit will be ₹75 lakh.

  • ✔️I got my registration cancelled during the financial year.

    Even if the taxpayer had their registration cancelled during a particular financial year, they must compulsorily file their GSTR 4 returns, even if they are not liable to pay any tax.