Introduction
GSTR-4 is a mandatory annual GST return for taxpayers registered under the Composition Scheme. Filing GSTR-4 correctly and on time is essential to remain compliant, avoid penalties, and continue enjoying the benefits of reduced tax rates under the scheme.
This Saving Mantra guide explains the step-by-step GSTR-4 filing process, eligibility, due dates, documents required, and practical tips to ensure smooth GST compliance.
What Is GSTR-4?
GSTR-4 is an annual GST return filed by composition dealers declaring:
- Summary of outward supplies
- Tax payable and paid
- Inward supplies attracting reverse charge
- Import of services, if any
It replaces the earlier quarterly GSTR-4 return and is now filed once every financial year.
Who Is Required to File GSTR-4?
GSTR-4 must be filed by:
- Taxpayers registered under the GST Composition Scheme
- Businesses opting for fixed tax rates under GST
- Eligible traders, manufacturers, and restaurants (non-alcohol)
Who Is Not Required to File GSTR-4?
- Normal GST taxpayers
- Input Service Distributors (ISD)
- Casual taxable persons
- Non-resident taxable persons
- Taxpayers who opted out of the composition scheme during the year
Due Date for GSTR-4 Filing
- 30th April following the end of the financial year
(Example: FY 2024–25 → Due date 30 April 2025)
Late filing attracts penalties.
Documents Required for GSTR-4 Filing
- GSTIN and GST portal login credentials
- Summary of outward supplies
- Purchase details under reverse charge
- Import of service details (if applicable)
- Tax payment details
- Bank statements (for reconciliation)
Step-by-Step Process for Filing GSTR-4
Step 1: Login to GST Portal
Visit https://www.gst.gov.in and log in using your GST credentials.
Step 2: Navigate to GSTR-4
Go to:
Services → Returns → Annual Return → GSTR-4
Select the relevant financial year.
Step 3: Review Auto-Populated Details
Check details auto-filled from:
- CMP-08 statements
- GST payment records
- Registration profile
Step 4: Enter Outward Supply Details
Declare:
- Total turnover
- Taxable outward supplies
- Exempt supplies (if any)
Step 5: Declare Reverse Charge & Imports
Provide details of:
- Inward supplies under reverse charge
- Import of services (if applicable)
Step 6: Tax Calculation & Payment
Verify tax liability:
- Composition tax payable
- Interest or late fees (if applicable)
Pay any pending dues through electronic cash ledger.
Step 7: File GSTR-4
Submit the return using:
- DSC (for companies/LLPs)
- EVC (for proprietors/partnerships)
Once filed, an ARN is generated.
Late Fees & Penalty for GSTR-4
- ₹200 per day (₹100 CGST + ₹100 SGST)
- Maximum late fee capped as per GST rules
- Interest applicable on delayed tax payment
Timely filing helps avoid unnecessary costs.
Common Mistakes to Avoid
- Missing the annual due date
- Incorrect turnover declaration
- Ignoring reverse charge transactions
- Filing without reconciling CMP-08
- Not clearing tax dues before filing
Benefits of Timely GSTR-4 Filing
- Continued eligibility for composition scheme
- Avoidance of penalties and notices
- Clean GST compliance record
- Smooth business operations
- Reduced scrutiny from GST authorities
Why Choose Saving Mantra for GSTR-4 Filing?
- Expert GST compliance professionals
- Accurate annual return preparation
- CMP-08 and tax reconciliation support
- Notice handling assistance
- Affordable and transparent pricing
Frequently Asked Questions (FAQs)
Is GSTR-4 mandatory for composition dealers?
Yes, all composition taxpayers must file GSTR-4 annually.
Can GSTR-4 be revised?
No, GSTR-4 cannot be revised once filed.
Is CMP-08 different from GSTR-4?
Yes, CMP-08 is a quarterly statement, while GSTR-4 is an annual return.
What happens if GSTR-4 is not filed?
Late fees, interest, and GST notices may be issued.
Conclusion
GSTR-4 filing is a critical annual compliance for composition scheme taxpayers. Accurate reporting, timely filing, and proper reconciliation ensure continued benefits under the scheme and protect your business from penalties.
Professional assistance can simplify the process and ensure full compliance.
Disclaimer
This article is for informational purposes only and does not constitute legal or tax advice. GST laws and compliance requirements may change from time to time. Readers are advised to consult qualified GST professionals or contact Saving Mantra before taking any action.