GSTR-4 Annual Return Filing: Eligibility, Procedure, and Due Date for Composition Taxpayers

GSTR-4

GSTR-4 Annual Return Filing: Eligibility, Procedure, and Due Date for Composition Taxpayers

GSTR-4

GSTR-4 is an annual return that must be filed by all taxpayers registered under the GST Composition Scheme. If you’re a small business paying GST at a fixed rate and looking for a simplified compliance process, this guide walks you through the entire online filing process for GSTR-4—from prerequisites and deadlines to step-by-step instructions and troubleshooting tips.

What is GSTR-4?

GSTR-4 is an annual GST return specifically designed for composition scheme taxpayers. Until FY 2018-19, it was a quarterly return. However, starting FY 2019-20, it became an annual return while tax payments continue to be made quarterly through CMP-08.

GSTR-4 includes:

  • Summary of quarterly CMP-08 filings

  • Inward supplies (purchases)

  • Outward supplies (sales, if any)

  • Taxes paid under the scheme

📌 Note: Once GSTR-4 is filed, it cannot be revised.

GSTR-4

Latest GSTR-4 Updates

🔹 53rd GST Council Meeting – June 22, 2024

 

The due date to file GSTR-4 has been extended to June 30 for all future years, effective from FY 2024-25 onwards.

🔹 Amnesty Scheme – March 31, 2023

For taxpayers who missed GSTR-4 filings for FY 2017 to 2022:

  • Late fee capped at Rs. 500 (Rs. 250 CGST + Rs. 250 SGST)

  • Nil returns: No late fee

Who Needs to File GSTR-4?

You must file GSTR-4 if:

  • You’re registered under the Composition Scheme for any part of the year

  • You opted out of the scheme mid-year

  • Your GST registration was cancelled, but you had composition status before that

  • You had no business activity (must file Nil GSTR-4)

When to File GSTR-4?

Annual Due Date: 30th June following the end of the financial year
(e.g., For FY 2024-25, the due date is 30th June 2025)

When to File GSTR-4?

  • Annual Due Date: 30th June following the end of the financial year
    (e.g., For FY 2024-25, the due date is 30th June 2025)

Late Filing Penalty

TypeLate FeeMax Penalty
Regular ReturnRs. 200/day (Rs. 100 CGST + Rs. 100 SGST)Rs. 5,000
Nil ReturnRs. 500 total (as per amnesty/notification)Rs. 500

Pre-Filing Checklist

Before filing GSTR-4:

  • Ensure you’re registered under the Composition Scheme

  • File all CMP-08 forms for the financial year

  • Keep turnover details of the previous financial year ready

Step-by-Step Process to File GSTR-4 Online

Step 1: Login to GST Portal

Go to 👉 www.gst.gov.in
Login using your credentials

Step 2: Navigate to GSTR-4

Services > Returns > Annual Return
Click on ‘File Annual Returns’

Step 3: Select Financial Year

Choose the relevant FY (e.g., 2024-25)

Step 4: Click ‘Prepare Online’

Read the on-screen instructions carefully

Step 5: Enter Turnover Details

Input aggregate turnover of the previous year. Enter “0” if there was none. Click ‘Save’

Step 6: File Nil GSTR-4 (If Applicable)

If no purchases or sales:

  • Tick ‘File Nil GSTR-4’

  • Click ‘Proceed to File’

Step 7: Fill Relevant Tables (if Not Nil)

Complete the following sections:

  • Table 4A: Inward supplies from regular dealers

  • Table 4B: Inward supplies under reverse charge

  • Table 4C: Supplies from unregistered dealers

  • Table 4D: Import of services

  • Table 5: CMP-08 summary (auto-filled)

  • Table 6: Outward supplies, if any

  • Table 7: TDS/TCS credit (auto-filled)

Step 8: Preview & Make Payments

  • Click ‘Proceed to File’

  • Download PDF/Excel preview

  • If needed, create a challan and pay via Electronic Cash Ledger

Step 9: File with DSC or EVC

  • Tick the Declaration

  • Select Authorized Signatory

  • File using DSC or EVC

  • Receive ARN confirmation via SMS/Email

Understanding GSTR-4 Tables in Detail

TableDescription
4AInward supplies from registered suppliers (regular)
4BInward supplies under reverse charge
4CSupplies from unregistered suppliers
4DImport of services
5CMP-08 summary (auto-filled)
6Outward supplies and reverse charge summary
7TDS/TCS credits (auto-filled)

How to File Nil GSTR-4

Conditions:

  • No purchases, sales, or other liabilities

  • All CMP-08 returns are Nil

Steps:

  1. Choose ‘File Nil GSTR-4’

  2. Click ‘Proceed to File’

  3. Sign and submit using DSC or EVC
    ✅ No late fee if filed before the due date

GSTR-4

Common Errors and Fixes

IssueSolution
“Records under processing”Wait and refresh page
Upload errorAvoid special characters, check internet
Saved data not visibleUse ‘Records per Page’ or Search
File not submittingEnsure all tables are filled, check DSC/OTP

Read More: GST Compliance Checklist for Financial Year 2025-26

Filing GSTR-4 is crucial for staying compliant under the Composition Scheme. Though it’s an annual return, quarterly CMP-08 payments are mandatory. If you qualify for a Nil return, the filing process is even faster.

Stay ahead of deadlines, avoid penalties, and always keep a copy of your filed return for your records.

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Key Changes in GST Annual Return for FY 2023-24: A Guide to Filing Without Errors

GST Annual Return

Key Changes in GST Annual Return for FY 2023-24: A Guide to Filing Without Errors

GST Annual Return

The GST Annual Return filing season is here, and it’s crucial for registered taxpayers to ensure accuracy to avoid potential mismatches, particularly with Input Tax Credit (ITC). The GST annual return for FY 2023-24 must be filed on or before December 31, 2024. However, there are several changes in the process that taxpayers need to understand to ensure smooth compliance.

Who Needs to File the GST Annual Return?

GST-registered taxpayers, except those in specific categories, must file the annual return in Form GSTR-9. Exceptions include:

  • Input Service Distributors
  • Persons paying tax under TDS/TCS
  • Casual taxable persons
  • Non-resident taxable persons

For taxpayers with a turnover of up to ₹2 crores, filing the GST annual return is not mandatory for FY 2023-24.

For businesses with turnovers exceeding ₹2 crores, the following rules apply:

  • Turnover ₹2-5 crores: Filing GSTR-9C (reconciliation statement) is optional.
  • Turnover above ₹5 crores: Filing GSTR-9C is mandatory.

Changes in GSTR-9 for FY 2023-24

The most notable update in the GSTR-9 relates to the sourcing of ITC details in Table 8A. Previously, ITC details in Table 8A were auto-populated using data from GSTR-2A, a statement of inward supplies. Starting from FY 2023-24, Table 8A will now derive its data from GSTR-2B.

What is GSTR-2B?

GSTR-2B is an auto-drafted statement reflecting ITC based on invoices uploaded by suppliers in their respective GSTR-1 returns. This change is expected to:

  • Simplify the reconciliation process.
  • Minimize manual efforts by taxpayers.

Implications of the Change

Switching from GSTR-2A to GSTR-2B emphasizes the need for taxpayers to ensure their suppliers upload invoices promptly. Any delays or errors in supplier filings can lead to discrepancies, requiring additional effort to reconcile ITC claims.

  • Table 8A: Now populated based on GSTR-2B, reflecting eligible ITC.
  • Table 8D: Highlights discrepancies between ITC claimed and ITC auto-populated for reconciliation purposes.

Additionally, Table 6 of GSTR-9 will report ITC based on actual utilization for the financial year as per returns filed.

Key Steps for Accurate Filing

To avoid mismatches and ensure compliance:

  1. File Monthly/Quarterly Returns First: Ensure all monthly or quarterly returns (under the QRMP scheme) are filed before starting the annual return. GSTR-9 data is auto-populated from these returns.
  2. Monitor GSTR-2B Closely: Regularly check GSTR-2B to ensure all eligible ITC is captured.
  3. Reconcile ITC Claims: Compare ITC in GSTR-3B with GSTR-2B data to avoid mismatches.

Read More: GST Amnesty 2024: Waiver of Interest and Penalties Under Section 128A

The new approach of using GSTR-2B for auto-populating ITC in GSTR-9 aims to improve accuracy and reduce errors. However, it places greater responsibility on taxpayers to maintain data accuracy and coordinate with suppliers. Proactive monitoring and timely action will help ensure smooth filing for FY 2023-24.

For further assistance with GST compliance, consider reaching out to experts to navigate the complexities of annual return filing and reconciliation.

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Key Relaxations and Optional Tables in GSTR-9 and GSTR-9C for FY 2023-24

Key Relaxations and Optional Tables in GSTR-9 and GSTR-9C for FY 2023-24

GSTR-9

With the approaching deadline for filing GSTR-9 and GSTR-9C for FY 2023-24, the Central Board of Indirect Taxes and Customs (CBIC) has implemented several relaxations to ease the compliance process. These updates, outlined in the CGST (Amendment) Rules, 2024, aim to reduce the reporting burden on taxpayers while making the filing process more efficient and straightforward.

Below is a comprehensive summary of the key relaxations and optional reporting tables introduced in GSTR-9 and GSTR-9C for FY 2023-24:

1. Simplifications in GSTR-9

A. Outward Supplies and Adjustments (Table 5)

  • Exempted and Nil-Rated Supplies (5D & 5E):
    Taxpayers can report the consolidated value of both exempted supplies and nil-rated supplies in Table 5D.
  • Credit and Debit Notes (5H & 5I):
    The value of credit and debit notes can be reported on a net basis against the original supplies (Tables 5A-5F).
  • Amendments to Supplies (5J & 5K):
    Similarly, amendments to supplies can also be reported on a net basis for Tables 5A-5F.
GSTR-9

B. Input Tax Credit (ITC) Details (Table 6)

  • Inward Supplies (6B, 6C & 6D):
    Taxpayers now have the option to report ITC on inputs and input services in a single consolidated column under “Inputs.”
  • Imports (6E):
    ITC on imported goods and services can also be consolidated under the “Inputs” column.

C. Reversal of ITC (Table 7)

  • Reversal of ITC (7A to 7E):
    Instead of filling multiple sub-tables, taxpayers can report all reversals in a consolidated manner under Table 7H, labeled as “Other Reversals.”

D. Tax Paid (Table 9)

Taxpayers are required to provide an annual summary of GST payments, as reflected in their GSTR-3B returns, ensuring alignment between returns and payments.

E. Optional Reporting for Certain Tables

  • Sales Adjustments for Future Periods (Tables 10 & 11):
    Reporting of sales adjustments made in FY 2024-25 for transactions of FY 2023-24 is optional.
  • ITC Adjustments (Tables 12 & 13):
    Tables related to ITC reversals and availment for transactions spanning FY 2023-24 and FY 2024-25 are optional.
  • Demand and Refund (Table 15):
    Details of demands raised and refunds claimed during the year are not mandatory to report.
  • Composition and Job Work Supplies (Table 16):
    Reporting supplies from composition taxpayers, deemed supplies by job workers, and goods sent on approval can be skipped.
  • HSN Codes for Supplies (Tables 17 & 18):
    Simplified HSN/SAC reporting:
    • For businesses with a turnover > ₹5 Crores, report 6-digit HSN codes.
    • Others can report 4-digit HSN codes for B2B transactions.

2. Relaxations in GSTR-9C

A. Optional Table

  • Table 14 (Differential Tax):
    Reporting of differential tax paid on adjustments made in Tables 10 and 11 is optional.

B. Mandatory Tables

All other tables in GSTR-9C remain mandatory for taxpayers.

3. Simplified Reporting for Small Businesses

For businesses with a turnover of less than ₹5 Crores, simplified compliance includes:

  • Optional HSN reporting at the 4-digit level.
  • Consolidation of multiple ITC categories and reversals, reducing the complexity of reporting.

Read More: GST Amnesty 2024: Waiver of Interest and Penalties Under Section 128A

These relaxations for FY 2023-24 aim to provide greater flexibility to taxpayers, reducing compliance time and effort. By allowing consolidated reporting and optional tables, the CBIC continues to streamline GST compliance processes.

Taxpayers are encouraged to review these changes carefully and consult professionals for efficient filing to avoid penalties or errors.

Stay updated with Certicom Consulting for expert GST advisory and compliance assistance.

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