GSTR-4 – Annual Return Filing, Format, and Due Date
4 October 2022
The GSTR-4 includes invoice-level information on the purchases a composition vendor makes from other taxpayers throughout the tax period, and the overall amount of sales and supplies made, the tax paid at a compounding rate, and other financial information.
The Government of India introduced many different GSTR forms with the convenience of use. Like other GSTR Forms, GSTR-4 must be submitted online by the 18th of the month following the quarter and is only available to dealers registered under the GST composition system. Every taxpayer must fulfil their obligation seriously and on time under the expansive and unambiguous GST scheme.
What is GSTR 4?
GSTR-4 is a form that registered taxpayers enrolled in the composition scheme must submit once every three months (they are known as composition vendors).
The data from registered vendors’ sales returns (GSTR-1) can be accessed in the GSTN portal as GSTR-4A for you to utilise in your GSTR-4 when you make purchases from them. You can review this data before filing your return, edit it as needed, and add any information that wasn’t automatically filled in. There is also a GSTR-4 late feeapplicable for late filings.
When to File GSTR-4?
In the case of GSTR-4 filing, this return may be filed as soon as the quarter has ended. The GSTR-4 must be submitted by the 18th of the month, which follows the quarter’s conclusion. For instance, if you are submitting the GSTR-4 for the quarter of July-September, you must do so by the 18th of October.
GSTR-4closely adheres to the GST Composition Structure, a straightforward and basic GST scheme. This system allows small taxpayers to avoid cumbersome GST formalities and pay GST simply at a set turnover rate. Any taxpayer with an annual turnover of less than 1.5 Crore may choose this program. It is always wise to file a GSTR-4 before the due date.
How to File GSTR 4?
GSTR-4 filing is quite simple and not much of a burden. There are various bits of information concerning composition dealers in the GSTR 4 format. The year and quarter for which the GSTR-4 is filed are requested in the first section. The tax information from that time is requested in the sections that follow.
The below steps can be used by a taxpayer to file a GSTR 4 online:
Step 1: The taxpayer must first provide their login information to access the GST portal.
Step 2: After that, customers must select the “Services” option and then “Returns.”
Step 3: The taxpayer in question must then choose “Returns Dashboard.”
Step 4: The taxpayer must next decide on the fiscal year and filing period.
Step 5: After that, they must select “Prepare Online” under Quarterly Returns GSTR-4.
Step 6: After completing the previous step, the taxpayer must select “Yes” or “No” in response to a series of questions.
Step 8: The taxpayer will then be directed to a page that lists the fields for which they clicked “Yes.” Here, users must complete all the information required.
Step 9: To examine the provided information, the taxpayer must select “Preview” after completing this step. It is advised that the taxpayer download a PDF copy of the same for personal use or future reference.
Step 10: To calculate the interest, late charge (if any), and total tax obligations, the taxpayer must click on “Proceed to File” next.
Step 11: The taxpayer must file their taxes and verify their identity at the same time as in the previous step. They can do it using either an electronic verification code (EVC) or a digitally signed certificate (DSC) (EVC). To proceed, the taxpayer must choose the option that best suits their needs.
Step 12: When the taxpayer completes step number 11 successfully, a success message and an Acknowledgement Reference Number (ARN) that they must record will appear on their screen. This notification confirms that the taxpayer successfully finished the GSTR-4 online filing procedure. The status of the returns will then be changed to “Filed” shortly after.
Prerequisites for Filing GSTR-4
There are certain things that you need to remember before a GSTR-4 filing.
Under the GST, you must be a composition vendor and a registered taxpayer.
Your company must have a combined annual revenue of less than Rs. 75 lakh.
You should only engage in intrastate trade.
During this quarter, you must keep a record of every purchase or import you made.
What is the Due Date to File GSTR-4?
The GSTR 4is to be filed annually. The 30th of April following the applicable financial year is the deadline for submitting GSTR 4 forms. For instance, the GSTR-4 last date for the fiscal year 2021–2022 is due on April 30, 2022. The deadline until the fiscal year 2018–19 was the 18th of the month after the quarter’s conclusion.
*Note: Following the CGST announcement no. 7/2022 dated May 26th, the CBIC advised a late fee waiver to file GSTR-4 annual returns for the FY 2021–22 between 1st May 2022 and 30th June 2022.
What is the Format of GSTR-4?
The government-mandated GSTR-4 filing formatmostly consists of 22 headings. And to comprehend each heading separately, we will study it in detail here together with the information that must be provided following GSTR-5.
The important details that every GSTR-4 filing should have are as follows:
GSTIN (Goods and Services Taxpayer Identification Number)
Valid tax payer name and also trade name, if any.
Tax period/period of return
Taxable Inward Supplies to a composition dealer
Changes to the attributes of Inward Supplies received during previous tax periods.
Imported goods /capital goods (received from overseas)
Modifications to Details of Imported goods/capital goods; received in earlier tax periods.
Services imported from abroad (secured from external international suppliers).
Modifications to Details of Imported services; received in earlier tax periods.
Outward supplies made
Modifications to outward supplies related to intra-state supplies; received in Earlier Tax Periods
Debit notes and credit note details
Changes to debit/credit notes of previous tax periods.
Receipt of TDS credit during the Quarter
Tax Liability arising on account of the time of supply without receipt of Invoice
Amendments within Tax liability appearing with respect to the duration of Supply without invoice receipt.
Tax already paid concerning the reverse charge for invoices received in the current period on account of the time of supply.
Tax Liability Payable
Tax Payment details
The GSTN will check at the end to see if a composition dealer is likely to exceed the composition limit before the due date for the subsequent return.
What is the Penalty to be Paid in Case of Non-filing?
As stated earlier, there is a GSTR-4 late fee. According to the most recent update, there is a late fee of Rs. 50 each day, up to a maximum of Rs. The maximum late fee in cases when there is no tax liability is Rs. 500. If the GSTR-4 is not submitted by the deadline, there was previously a late fine of Rs. 200 per day. The highest late fee that could be assessed was Rs. 5,000.
Important Points to Remember while Filing GSTR-4
Some things to keep in mind about the GSTR-4 annual return.
The taxpayer will be charged a late fee of 200 each day, up to a maximum fee of 5,000, if the GSTR 4 returns are not filed on time. The taxpayer will be charged 20 for each day the GSTR-4 filing deadline is passed even if they are not required to pay any tax for that time.
The taxpayer won’t be allowed to file GSTR-4 for the following tax period if they don’t do so for a specific tax period.
The taxpayer may submit their GSTR 4 yearly returns using third-party software.
GSTR-4 has to be filed on an annual basis by a composition dealer. Taxpayers whose business turnover is less than ₹1.5 crores are eligible for the same through the GST portal. Once filed, GSTR-4 cannot be revised on the GSTN Portal. Hence it is advisable to check your information populated and make changes, if necessary.
Q1. What happens after Form GSTR-4 (Annual Return) is filed?
Ans:ARN will be produced upon the Form’s successful submission. The authorized signatory’s mobile phone will receive an SMS and email upon the successful submission of Form GSTR-4 (Annual Return). Updates will be made to the Electronic Cash Ledger and Electronic Liability Register Part-I.
Q2. Who does not need to file Form GSTR-4?
Ans:Here is a list of entities exempt from filing the Form GSTR-4: • Regular taxpayers who did not choose the composition plan at any point throughout the fiscal year • non-resident taxpaying entities • Distributor of OIDAR Input Services • A Temporary Taxable Person • People obligated by Section 51 to Withhold Tax at Source • UIN holders are required to collect tax at source under Section 52.
Q3. What are the pre-conditions for filing Form GSTR-4
Ans:The taxpayer must have been enrolled during the applicable fiscal year and must have chosen the composition scheme for at least one day of the fiscal year. All Form CMP-08 quarterly statements for the corresponding period must have been submitted by the taxpayer during the appropriate fiscal year.
Q4. Can I file the Form without paying a late fee for GSTR-4 annual return (if applicable)?
Ans:If Form GSTR-4 (Annual Return) is filed after the deadline, you are not permitted to do so without paying the applicable late fee. If Form GSTR-4 (Annual Return) is filed after the deadline, you are not permitted to do so without paying the applicable late fee.
Q5. When will the “File GSTR-4” button get enabled?
Ans:The File button only becomes active if you have filed Form GST CMP-08 for all applicable quarters of the relevant Financial Year. If any liabilities exist, they cannot be paid for using “Additional cash which is required.”
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This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
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