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.
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 fee applicable for late filings.
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.
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.
There are certain things that you need to remember before a GSTR-4 filing.
The GSTR 4 is 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.
The government-mandated GSTR-4 filing format mostly 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:
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.
Some things to keep in mind about the GSTR-4 annual return.
Also Read: What is QRMP Scheme under GST?
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.
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.
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.
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.
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.
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.”
This article is solely for educational purposes. Navi doesn't take any responsibility for the information or claims made in the blog.
|Section 194IB||Section 44AA||Section 80E|
|Section 195||Section 80EEA||Section 80DD|
|Section 80CCC||Section 80GG||Section 80 G|
|Section 54F||Section 1941A||Section 10|
|Section 194Q||Section 192||Section 269SS|
|Section 80DDB||Section 44AD||Section 194C|
|Section 194A||Section 194H||Section 80D|
|Section 80C||Section 80C, 24(b), 80EE & 80EEA||Section 234A|
|Section 50C||Section 80C||Section 80EEA|
|Section 194B||Section 194J||Section 206C|
|Section 80CCG||Section 80 EEB||Section 24Q|
|Section 40b||Section 194C||Section 54EC|
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