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GSTR-4 is a return that must be filed by the taxpayers opting for Composition Scheme on an annual basis. Until FY 2018-19, the return was filed every quarter which got replaced by CMP-08. A composition dealer is not like a normal taxpayer that pays 3 monthly returns, a composition dealer furnishes only one return once a year under a composition scheme using GSTR-4 form. The form GSTR-4 is to be filed on the 30th of April of every year following a financial year time period.
A taxpayer opting for the Composition Scheme is required to file GSTR-4. It also covers the special composition scheme notified for the service providers vide the CGST (Rate) notification number 2/2019 dated 7th March 2020 with effect from FY 2019-20.
GSTR 4 has to be filed on an annual basis.
The due date for filing GSTR 4 is 30th of April following the relevant financial year. For example, the GSTR-4 for FY 2020-21 is due by 30th April 2021*. Until the FY 2018-19, the due date was 18th of the month after the end of the quarter.
*Note: The time limit to file GSTR-4 annual returns for the FY 2019-20 was further extended to 31st October 2020 from 31st August 2020.
Once a composition dealer pressed on the option of “PREPARE ONLINE.” Then there is nothing he can do to revise or rectify the GSTR-4 form anyhow.
Even if the document and form are submitted offline, the GSTR-4 form will not be able to be rectified.
Therefore, GSTR 4 cannot be amended or altered after filing on the GSTN Portal.
A late fee of Rs. 200 per day is levied if the GSTR-4 is not filed within the due date. The maximum late fee that can be charged cannot exceed Rs. 5,000.
Section 1: GSTIN – The composite taxpayer will get his GSTIN number automatically at the time of filing the return.
Section 2: Name of the Composite Taxpayer – The tax-paying person has to enter his or her name (legal) and the name of his or her trade. At the time of return filing, these names will automatically be generated.
Section 3: Correct Turnover Details – It’s important to write every detail appropriately as the GSTR-4 form is unrevisable. The tax-paying person has to enter the exact turnover as the information of the previous financial year always gets auto-populated every year. Also, the date of the ARN and ARN will automatically generate. As you can see in the image below:
Section 4: Inward Supplies With Reverse Charges (to be paid with tax) –
Here is the format of section 4.
Section 5: The summary of Form GST CMP-08 as a self-responsible liability – All the information in this section will automatically get uploaded directly from GST CMP-08. The GST CMP-08 is used for making the payment on a quarterly basis across the year. This section will also interconnect your payment details from the CMP-08 form filed during the year (it will include outside supplies, inside supplies, reverse charges, and tax & interest paid).
You can clearly see the format of section 5.
Section 6: Information that displays outside and inner supplies along with reverse charge during that year – A tax-paying person has to provide all the information about the outside supplies and inside supplies in the financial year. These supplies attract reverse charges based on the tax rate long with overall taxable value. And the taxes such as – CGST, SGST, IGST, and Cess will get automatically uploaded.
Here check the format of section 6 to understand it better.
Section 7: Credit received with TDS and TCS – All the TCS/TDS credit received from the e-commerce operator will be automatically generated in this section. Here the taxpayer will also mention the GSTIN of the deductor, gross invoice, and TDS deduction.
The format and content of section 7.
Section 8: Tax, interest, late fee payable and paid –
Section 9: Claiming the refund from E-cash ledger – If somehow, someone paid the tax in excess then he or she can claim the refund. Further, the refund amount will be bifurcated into tax, interest, penalty, fee, and other divisions.
In the end, the composite tax-paying person has to validate that all the information written or automatically generated in the form GSTR-4 is correct and true. Now, finally, they have to sign the form.
At the end of the page, you have to select the declaration checkbox and the authorized signatory. Press the ‘FILE GSTR-4’ button.
Click on ‘YES’ on an alert message and press either on ‘FILE WITH DSC’ or ‘FILE WITH EVC’ as displayed.
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