Composite taxpayers are required to file GSTR-4 Returns on an annual basis (earlier quarterly).
Until the Financial Year 2018-19, GSTR 4 was a quarterly return. CGST Rules 2017 were amended by the Third Amendment, 2019 to introduce the annual return GSTR-4. In accordance with the GST Notification 21/2019 dated 23rd April 2020, for taxpayers opting to use the Composition Scheme under GST, the GSTR-4 Quarterly has been replaced by CMP-08 (filed quarterly), and the GSTR-4 is the annual return to be submitted on 30th April following the end of the financial year.
Thus, every composite taxpayer filing GST Returns for FY 2017-18 or FY 2018-19 must file GSTR-4 on a quarterly basis and GSTR 9A on an annual basis. Nevertheless, taxpayers are required to file GSTR-4 annually beginning in fiscal years 2019-20 and 2021.
Who should file form GSTR-4?
Table of Contents
Taxpayers who are part of a composition are required to file Form GSTR 4. As of FY 2019-20, the CGST (Rate) notification number 2/2019 also covers the special composition scheme for service providers. The following are included:
- The composition scheme has been selected by taxpayers since registration and they have never opted out;
- Before the beginning of any financial year after GST was implemented, taxpayers who opted in to the composition scheme;
- The composition option was chosen by a taxpayer but subsequently opted out.
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
- UIN
- OIDAR
Pre-requisites to file GSTR-4 – Annual Return
- GST registered dealers who choose composition scheme even for one day of the financial year need to file GSTR 4 annually.
- Form CMP-08 quarterly statements must be filed by the registered taxpayer in accordance with government regulations.
GSTR-4 due date
Composite taxpayers must file GSTR 4 by the 30th of the month following the financial year for which they are filing annual returns.
GSTR-4 returns were previously due on or before the 18th day of the month following the quarter when they were quarterly returns.
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
Older Updates:
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.
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.
How is GSTR-4 Annual Return different from GSTR-4 Quarterly Return?
There is a difference between GSTR 4 – annual returns and GSTR 4 – quarterly returns.
For composition taxpayers, GSTR 4 (Quarterly) is applicable until 31st March 2019.
For composition taxpayers, CMP 08 and GSTR 4 must be filed quarterly and annually, respectively.
GSTR 4 format – Annual Return
The Form GSTR 4 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:
Table 4 allows you to gather information rate-wise and GSTIN-wise on a consolidated basis. A reverse charge tax must be paid on supplies that are inward supplies. The document is divided into four sections – 4A, 4B, 4C, and 4D.
4A – A description of all supplies received from registered suppliers (interstate and intrastate) on which the reverse charge mechanism (RCM) does not apply should be included.
4B – For all supplies (interstate and intrastate) received from a registered supplier, there must be details provided.
4C – It is necessary to provide detailed information regarding all supplies received from an unregistered supplier (interstate as well as intrastate).
4D – In accordance with RCM, details should be provided regarding all import services subject to tax.
Table 5:
The purpose of Table 5 is to capture information about outward supplies (including exempt supplies) and imports of services (including details regarding adjustments). Form GST CMP-08 summarizes self-assessed liability. Form GST CMP-08 automatically populates all the information in this table.
Table 6:
Please provide details for any inward supplies or outward supplies that are subject to reverse charge tax, including the rate and total taxable value. It will automatically populate the IGST, CGST, SGST, and Cess amounts.
Table 7:
All TDS/TCS credits received from suppliers/e-commerce personnel are automatically populated. It is required that the taxpayer mention the GSTIN of the deductor, the gross invoice value, and the total amount of TDS deducted.
Table 8:
- 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
Table 9:
A refund provision is provided in Table 9 for taxpayers who paid excess taxes. Taxes, interest, penalties, fees, and other charges must be separated from the refund amount.
Note: For verification purposes, taxpayers must sign the form.
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
A solution has been offered by the Central Board of Indirect Taxes and Customs for resolving the issue of negative liability in GSTR 4 – 22-07-2021 when composition taxpayers file their annual returns.
- A liability paid through Form GST CMP-08 that has no obligation to be paid during the year may move to a negative liability statement and the excess amount can be used for the payment of future liabilities.
- It will be raised a ticket to nullify the negative liability statement if the amount in table 6 of GSTR-4 was not filled for any reason.
Post filing GSTR-4:
- The taxpayer receives an ARN once he or she has successfully filed the form.
- The authorized signatory receives a supporting SMS and email.
- Part-I of the Electronic Liability Register (ELR) and Electronic Cash Ledger (ECL) will be updated.
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