Comprehensive Steps for Filing Annual GSTR-4 Online

The GSTR-4 serves as the annual Goods and Services Tax return for taxpayers under the composition scheme, effective from the financial year 2019-2020. Once submitted, this return cannot be revised. Delays in filing beyond the specified due date will incur late fees.

Recent Updates

June 22, 2024The 53rd GST Council meeting announced a revision to the GSTR-4 due date, moving it from April 30th to June 30th, starting from the financial year 2024-25.

March 31, 2023The Central Board of Indirect Taxes and Customs (CBIC) offered a concession to composition taxpayers who failed to file their GSTR-4 returns for the periods spanning July 2017 to March 2019, or for the financial years 2017-18 to 2021-22. These taxpayers could file their pending returns between April 1st, 2023, and June 30th, 2023. Under this scheme, late fees exceeding Rs. 500 per return (Rs. 250 each for CGST and SGST) were waived. No late fee was applied if the return was a Nil return.

Requirements for GSTR-4 Filing on the GST Portal

Before preparing and submitting GSTR-4, composition taxpayers must ensure they meet the following criteria:

• They must have been registered under and opted for the composition scheme for at least one day during the relevant financial year.
• All necessary Form CMP-08 statements for every quarter of the fiscal year must have been filed.
• The aggregate turnover registered for the preceding fiscal year should be noted.

Step-by-Step Guide to File GSTR-4 on the GST Portal

Here are the sequential steps for filing the annual GSTR-4 online.

Step 1: Accessing the PortalLog in to the GST portal. Navigate to the ‘Services’ menu, then ‘Returns’, and select the ‘Annual Return’ option. Alternatively, you can click the ‘Annual Return’ button directly from the dashboard.

Step 2: Selecting the Financial YearOn the ‘File Annual Returns’ page, choose the appropriate financial year for which the GSTR-4 (Annual) is being filed.

Step 3: Initiating Online PreparationClick on the ‘PREPARE ONLINE’ button located on the GSTR-4 Annual Return tile. Before proceeding, carefully review the instructions provided on the ‘File Returns’ page.

Step 4: Entering Aggregate TurnoverInput the aggregate turnover from the previous financial year and click ‘SAVE’. If no turnover was recorded for the previous year, enter zero instead of leaving the field blank. For instance, when filing for FY 2020-2021, you would report the aggregate turnover from FY 2019-2020.

A confirmation message will indicate successful data saving.

**Step 5: Filing a Nil GSTR-4 (Optional)**If you are filing a Nil GSTR-4, tick the ‘File Nil GSTR-4’ checkbox and click ‘PROCEED TO FILE’. This action will directly advance you to Step 7, and subsequently to Step 9. Skip this step if you are not filing a Nil return.

Step 6: Detailing Various GSTR-4 TablesEnter the required information for each GSTR-4 table. For each table, select it from the ‘Select tables to add/view details’ dropdown list, enter the specifics, and then click the ‘BACK’ button.

• **Table 4A: Inward Supplies from Registered Suppliers (excluding reverse charge)**Provide GSTIN-wise details of purchases made from GST-registered suppliers. Add the GSTIN, which will automatically populate the legal name and place of supply, then click the Add (+) button for each entry. Under ‘Item details’, input the taxable value and select the GST rate. Click Add (+) for additional rows or ‘SAVE’ to continue to the next GSTIN. Successfully added entries will appear under ‘Processed records’.

• **Table 4B: Inward Supplies from Registered Suppliers (subject to reverse charge)**Enter GSTIN-wise details of purchases from GST-registered suppliers where reverse charge applies. Add the GSTIN, which will auto-populate relevant details, then click Add (+). In ‘Item details’, specify the taxable value and the mandatory GST rate. Use Add (+) for more items or ‘SAVE’ to proceed. ‘Processed records’ will show successful entries.

• Table 4C: Inward Supplies from Unregistered SuppliersProvide PAN-wise details of purchases from GST-unregistered suppliers. PAN is optional; you can enter the trade/legal name. If reverse charge applies, select the checkbox and choose ‘Intra-State’ or ‘Inter-State’ for ‘Supply Type’. Click Add (+). For ‘Item details’, enter the taxable value and the GST rate. Click Add (+) for more items or ‘SAVE’ to move to the next PAN. Processed entries will be visible.

• Table 4D: Import of ServiceThis section requires details of imported services for which IGST has been paid. Click the Add (+) button for each item. Enter the taxable value and the applicable GST rate. Use Add (+) for more items or ‘SAVE’ to move to the next table. Successfully added entries will appear under ‘Processed records’.

• Table 5: Summary of Form CMP-08Review the auto-drafted summary of CMP-08 statements submitted for all four quarters of the financial year. This section is not editable.

• **Table 6: Tax Rate Wise Outward and Inward Supplies (Reverse Charge)**Taxpayers must input the value of outward supplies/sales, categorized by tax rate (0%, 1%, 2%, 5%, or 6%), in rows 12 to 16. This value should be net of advances, credit/debit notes, and adjustments. The value of inward supplies subject to reverse charge (auto-populated from Tables 4A, 4B, and 4C) in rows 1-11 is not displayed at this stage. Click ‘SAVE’ to proceed.

• Table 7: TDS/TCS Credit ReceivedView the auto-drafted, GSTIN-wise details of TDS/TCS credit received during the financial year. This table is not editable.

After entering all records, click ‘BACK’ to return to the GSTR-4 (Annual Return) dashboard.

General Notes for Data Entry:

• Negative values are permitted in Tables 4A, 4B, 4C, 4D, and 6.
• Entries can be edited or deleted at any time before filing by using the ‘Edit/Delete’ icons under the ‘Action’ column.
• Utilize the ‘Search’ field to locate specific records.
• The ‘Records Per Page’ dropdown allows adjustment of the number of records displayed.
• Use the ‘Download CSV’ link to export added details in CSV format.

Step 7: Previewing the ReturnClick ‘PROCEED TO FILE’ to preview the saved return. The return status will change to ‘Ready to file as on (date)’. You can download a PDF or Excel copy of the prepared return for review and record-keeping by clicking ‘DOWNLOAD GSTR-4 SUMMARY (PDF)’ or ‘DOWNLOAD GSTR-4 (EXCEL)’. Click ‘PROCEED TO FILE’ again to preview the form online, then click ‘CONTINUE’.

**Step 8: Making Tax Payments (If Applicable)**If any tax, interest, or late fees are due, make the necessary payments as shown in table ‘8. Tax, Interest, late fee payable and paid’ before continuing. The electronic cash ledger balance is provided for reference. Payments can be made in two ways:

1. Insufficient Cash Ledger Balance: Click ‘CREATE CHALLAN’ if the electronic cash ledger lacks sufficient funds. Choose a payment mode (e.g., NEFT/RTGS, Over the Counter, Net Banking) and generate the challan after payment.
2. Sufficient Cash Ledger Balance: If the electronic cash ledger has enough balance, the system will automatically adjust the cash for tax payment. In this scenario, the ‘Additional cash required’ column will show no amount.

After payments, download the updated GSTR-4 summary in PDF or Excel format for review before proceeding.

Step 9: Final Filing of GSTR-4File the GSTR-4 return using either a Digital Signature Certificate (DSC) or Electronic Verification Code (EVC). On the tax payment page, select the declaration checkbox and the authorized signatory. Click the ‘FILE GSTR-4’ button. Confirm by clicking ‘YES’ on the warning message, then choose either ‘FILE WITH DSC’ or ‘FILE WITH EVC’ on the ‘File return/statement’ page.

Upon successful filing:

• The return status will change to ‘Filed’.
• An Application Reference Number (ARN) will be generated and displayed.
• A confirmation message will be sent via SMS and email to the contact details registered with the GST portal.

Common Queries Regarding GSTR-4 Filing

• **Is GSTR-4 (Annual return) mandatory even if GST registration was cancelled during the financial year?**Yes, GSTR-4 (Annual) filing is compulsory if you were a composition taxpayer at any point during the financial year, if your GST registration was cancelled, or if you voluntarily opted out of the composition scheme during that period.

• **What defines a Nil GSTR-4 (Annual return)?**A Nil GSTR-4 (Annual Return) can be filed if there were no outward supplies, no receipt of goods or services, no other reporting liabilities, all Form CMP-08 statements for the quarters were filed as Nil, and no late fees are due for GSTR-4.

• **Are tax fields auto-populated based on taxable values?**Yes, tax fields are auto-populated, but cess amounts must be entered manually.

• **What should be done if records are processing or processed with errors during GSTR-4 (Annual return) filing?**If a warning message indicates records are still processing or have errors, wait for backend processing to complete. For errors, return to the GSTR-4 (Annual Return) dashboard and address the problematic records.