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Comprehensive Guide to GSTR-4 Return: Format and Contents for Composition Dealers

This article offers a detailed explanation of the GSTR-4 annual return, which is mandatory for taxpayers operating under the GST composition scheme. It systematically breaks down the form into its nine sections, elucidating required information such as basic taxpayer details, inward supplies, self-assessed liabilities, tax-rate-wise summaries, and TDS/TCS credits. The guide also highlights recent governmental concessions for delayed GSTR-4 filings and underscores the essential verification process.

📖 3 min read read🏷️ GSTR-4

The GSTR-4 form is an annual tax return submitted by taxpayers registered under the Goods and Services Tax (GST) composition scheme. Unlike regular taxpayers, who must furnish three monthly returns, composition dealers are only required to file GSTR-4 once a year. The usual due date for filing GSTR-4 is April 30th of the subsequent financial year.

Latest Updates on GSTR-4 Filing

As of March 31, 2023, the Central Board of Indirect Taxes and Customs (CBIC) announced a concession for composition taxpayers who had outstanding GSTR-4 returns for specific periods (July 2017 – March 2019) or financial years (2017-18 to 2021-22). If these returns are filed between April 1, 2023, and June 30, 2023, late fees exceeding Rs. 500 per return (Rs. 250 each for CGST and SGST) will be waived. No late fees apply to Nil returns filed under this scheme. Further details on this Amnesty Scheme under GST are available here.

Understanding the Structure and Sections of GSTR-4

The revised annual Form GSTR-4 is systematically divided into nine distinct sections.

Table 1-3: Basic Taxpayer Information

This section captures fundamental information about the taxpayer.

TableDetails
GSTINThe taxpayer's Goods and Services Tax Identification Number (GSTIN) is automatically populated upon filing the return.
Name of the taxpayerBoth the legal name and trade name of the taxpayer are automatically filled when the return is filed.
Aggregate turnover detailsThe total turnover from the preceding financial year is pre-populated. Additionally, the Acknowledgement Reference Number (ARN) and its date are auto-filled after the return submission.

Table 4: Details of Inward Supplies Subject to Reverse Charge

This section requires a taxpayer to report all received inward supplies.

TableDetails
4A: Supplies from a registered supplier (other than reverse charge)This includes details of all supplies received from registered suppliers (both interstate and intrastate) where the reverse charge mechanism is not applicable.
4B: Supplies from a registered supplier (attracting reverse charge)This covers details of all supplies obtained from registered suppliers (interstate and intrastate) that fall under the reverse charge mechanism.
4C: Unregistered supplierThis entails providing details of all inward supplies received from unregistered suppliers, encompassing both interstate and intrastate transactions.
4D: Import of servicesHere, taxpayers must declare all imported services for which tax is payable due to the applicability of the reverse charge mechanism.

Table 5: Consolidated Self-Assessed Tax Liability from Form GST CMP-08

The data in this table is automatically populated from Form GST CMP-08, which is utilized for quarterly tax payments. This section aggregates payment details from all CMP-08 forms filed throughout the year, including payments made on outward supplies, inward supplies subject to reverse charge, and any tax and interest paid.

Table 6: Annual Details of Outward and Reverse Charge Inward Supplies by Tax Rate

Taxpayers must specify all outward supplies and inward supplies attracting reverse charge, categorised by their respective tax rates. This includes the total taxable value. The corresponding IGST, CGST, SGST, and Cess amounts are automatically calculated and populated.

Table 7: Received TDS/TCS Credit Information

Any Tax Deducted at Source (TDS) or Tax Collected at Source (TCS) credit received from a supplier or e-commerce operator will be automatically populated in this table. Taxpayers are required to specify the GSTIN of the deductor, the gross invoice value, and the amount of TDS deducted.

Table 8: Summary of Tax, Interest, and Late Fee Payable and Paid

This table consolidates the financial obligations and payments.

TableDetails
Tax amount payableThis value is automatically carried forward from Table 6.
Tax amount already paidThis figure is auto-populated based on the details submitted in Form GST CMP-08.
Balance tax payableThis represents the difference between the tax amount payable and the tax amount already paid.
Interest payable and paidDetails regarding interest due for late return filing and the actual interest paid must be reported here.
Late fee payable and paidInformation concerning late fees due for delayed GST payments and the amount actually paid should be entered here.

Amounts paid under various tax heads, such as IGST, CGST, SGST, and Cess, must be itemized separately.

Table 9: Electronic Cash Ledger Refund Claims

In instances where excess taxes have been paid, taxpayers can claim a refund through this section. The refund amount should be itemised by categories: tax, interest, penalty, fee, and others.

Return Verification

Taxpayers are required to formally attest that all details provided in the aforementioned tables are accurate and correct by signing the GSTR-4 form.

Further Reading

Frequently Asked Questions

What is the eligibility criteria for the GST composition scheme?
The GST composition scheme is generally available for manufacturers, traders, and restaurants with an annual turnover below a specified threshold (currently Rs. 1.5 crore, with lower limits for some special category states).
How does the composition scheme differ from regular GST registration?
Under the composition scheme, taxpayers pay a fixed percentage of their turnover as GST, usually lower than regular rates, and file returns annually. Regular taxpayers follow a more complex system with higher rates and typically file monthly or quarterly returns, and can claim Input Tax Credit (ITC).
What are the annual turnover limits for opting into the composition scheme?
The general annual turnover limit to opt for the GST composition scheme is Rs. 1.5 crore, with certain exceptions for special category states where the limit is Rs. 75 lakh. This limit applies to the previous financial year's aggregate turnover.
Can a composition dealer claim Input Tax Credit (ITC)?
No, a key characteristic of the GST composition scheme is that composition dealers are not allowed to claim Input Tax Credit (ITC) on inward supplies. They also cannot issue tax invoices.
What penalties apply for late filing of GSTR-4?
Late filing of GSTR-4 can incur a late fee of Rs. 50 per day (Rs. 25 under CGST and Rs. 25 under SGST), capped at a maximum of Rs. 5,000. Additionally, interest at 18% per annum may be charged on the outstanding tax liability.