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What is GSTR 4?

GSTR-4 is a GST Return that must be filed by a composition dealer. Unlike an ordinary taxpayer who needs to submit three month-to-month returns, a dealer choosing the composition plan has to submit just one return – GSTR 4, once a year by the 30th of April, following a financial year.

What is a Composition Scheme?

The Composition Scheme is a basic and straightforward scheme under GST for taxpayers. Small taxpayers can dispose of monotonous GST conventions and pay GST at a fixed rate of turnover. This scheme can be picked by any taxpayer whose turnover is not higher than Rs. 1.5 crore. All taxpayers who opt for the composition scheme must file the tax return.

Understanding how to file GSTR 4 step by step

There are 13 sections in the GSTR 4 form, not all of which are compulsory fields. Let us take a closer look at all the sections.

Part 1. GSTIN:- Every Taxpayer gets a state-wise PAN-based 15 digit Goods and Services Taxpayer Identification Number (GSTIN) from the Government. The taxpayer’s ID will be automatically filled when filing tax returns in the future.

Part 2. Lawful Name of the Registered Person and Trade name (assuming any):- The taxpayer’s name will be automatically entered at the time of filing the returns at the GSTN portal.

Part 3. Yearly turnover in the former Financial Year:- A taxpayer must enter all the information when they’re filing for the first time, after which it will be automatically saved and refreshed in the succeeding years.

Part 4. In Table 4A, inward supplies acquired from a registered supplier (other than supplies attracting reverse charge) will be auto-populated from the input given by the supplier previously in GSTR 1 and GSTR 5.

In Table 4B, inward supplies obtained from a registered supplier attracting reverse charge will be automatically filled from the information given by the supplier in GSTR 1. It should be noted that all inward supplies to composition will also be auto-filled.

Part 5. It will incorporate amendment information referred to in earlier tax periods and the original amendment of debit note or credit note received on a rate-wise basis. Destination of the supply to be referenced if it differs from the location of the recipient. If you make amendments to the details of the original debit/credit note, you must fill it in the first three sections of the table under section 5.

Part 6. Under this part, you will give the details of the tax rate, complete turnover, and the composition tax amount (including both central tax and State/Union Territory tax).

Part 7. Under this segment, you can amend the incorrect details you gave in Table 6 in past returns without adding the turnover revealed details.

In the GST council meeting, the authorities chose to revise the GSTR 4 filing form with some inclusion of terms in clauses 6 and 7. The revised sections will be included in the final form and referenced in red text.

Part 8. Under this, you must reference the details of the advance paid identifying with reverse charge supplies, any taxes you paid on them, and the adjustments issued against the invoices.

Part 9. TDS (Tax Deducted at Source) will be auto-filled in Table 9.

Part 10. Under this part, you will add the details of Integrated Tax, Central Tax, State/Union Territory Tax, cess tax amount payable, and the tax amount paid.

Part 11. This segment is for taxpayers who have not paid their taxes timely.

Part 12. If, by chance, the tax liability of the composition seller is not as much as what the TDS deducted, he can get a refund of the adjusted amount. The amount which is accessible for the refund will be auto-filled here.

Part 13. Debit sections in cash ledger for tax/interest payment [to be populated after payment of tax and submissions of return].

What is the due date for filing GSTR 4?

All taxpayers must file their returns under the GSTR 4 form by the 30th of the month after the financial year ends. This deadline is subject to change per the government’s discretion.

Who can file their returns under GSTR 4?

Before planning and filing GSTR-4,  a composition taxpayer must meet the following conditions:

  1. They must be registered and opt for the composition plot on any day during the pertinent monetary year.
  2. They must possess documentation of all the pertinent form CMP-08 statements for every quarter of the financial year.
  3. They must make a note of the aggregate turnover registered for the preceding financial year.

Where can you find the form for filing GSTR 4?

The government allows taxpayers, assessors, and businesses to document GSTR 4 annually. This measure suits the best interests of the whole community. The form is accessible on the portal, enabling assessors and taxpayers to file the form at their convenience.

You simply have to visit the GST portal and follow these steps:

Login > Services > Return > Annual Returns > File the return

If you don’t want to go through so many steps, choose myBillBook software. myBillBook makes it easier to file the GSTR 4 forms as it provides you with a report detailing all the information you need to fill in, saving you time and effort!