FORM GSTR-4: Simplifying GST Returns for Composition Scheme Taxpayers

Embrace the ease and convenience of FORM GSTR-4 to stay on top of your tax obligations and focus on what matters most: your business.


Form GSTR-4
is an annual return that must be filed by taxpayers who have opted for the Composition Scheme under the Goods and Services Tax (GST) regime in India. It is a simplified return that requires taxpayers to provide a summary of their annual sales, purchases, and tax payments. The due date for filing GSTR-4 is 30th April following the relevant financial year.

In the world of taxation, complying with the rules and regulations can often be a daunting task. This is particularly true for small businesses and taxpayers who fall under the Composition Scheme. Thankfully, the Indian government has introduced FORM GSTR-4 to simplify the GST return filing process for these taxpayers. In this article, we will explore the various aspects of FORM GSTR-4, its benefits, and how it eases the burden of tax compliance.

What is FORM GSTR-4?

FORM GSTR-4 is a quarterly return to be filed by taxpayers registered under the Composition Scheme of the Goods and Services Tax (GST). The Composition Scheme is designed to provide relief to small businesses with a simplified tax regime and reduced compliance obligations. FORM GSTR-4 helps such taxpayers provide necessary information and fulfill their compliance requirements.

The Benefits of FORM GSTR-4

As a taxpayer registered under the Composition Scheme, filing your quarterly returns through FORM GSTR-4 offers several benefits:

  1. Simplified Process: FORM GSTR-4 is designed to be user-friendly and easy to fill, ensuring that even taxpayers with limited resources and knowledge can comply with the GST regulations.
  2. Reduced Compliance Burden: Under the Composition Scheme, taxpayers are not required to maintain detailed records and invoices like regular taxpayers. FORM GSTR-4 aligns with this principle, allowing for a simplified summarization of transactions.
  3. Lower Tax Liability: Composition Scheme taxpayers have the advantage of paying a lower rate of tax based on their turnover. FORM GSTR-4 helps calculate the tax liability, making it easier for taxpayers to determine their tax obligations accurately.
  4. Fewer Return Filings: Composition Scheme taxpayers are only required to file quarterly returns. This reduces the frequency of compliance, allowing businesses to focus more on their day-to-day operations.

How to File FORM GSTR-4

Filing FORM GSTR-4 requires a step-by-step approach. Here’s a simplified guide to filing your quarterly return:

  1. Access the GST Portal: Log in to the GST portal (www.gst.gov.in) using your unique credentials.
  2. Navigate to the ‘Services’ Menu: From the dashboard, click on the ‘Services’ tab and select ‘Returns’ -> ‘Returns Dashboard’.
  3. Select the Applicable Financial Year: Choose the relevant financial year and the quarter for which you wish to file the return.
  4. Enter the Required Details: Fill in the necessary information, such as turnover details, tax calculations, and payment of taxes.
  5. Review and Submit: Review the details entered and make any necessary corrections. Once satisfied, submit the return.
  6. Generate and File GSTR-4: After submitting the return, generate the GSTR-4 return form and file it on the portal.

Details to be furnished in GSTR-4

The following details are required to be furnished in GSTR-4:

  • Details of sales made during the financial year
  • Details of purchases made from registered taxable persons during the financial year
  • Details of tax paid at the compounded rate during the financial year
  • Any other information as may be required

How to file GSTR-4

GSTR-4 can be filed online through the GST portal. The following steps are involved in filing GSTR-4 online:

  1. Log in to the GST portal using your credentials
  2. Go to the ‘Returns’ tab and select ‘Annual Return’
  3. Select the financial year for which you want to file the return
  4. Fill in the required details and submit the return
  5. Download the acknowledgement receipt

Late filing penalty for GSTR-4

If a taxpayer fails to file GSTR-4 within the due date, they will be liable to pay a late filing penalty. The penalty is Rs.100 per day for the first 15 days of delay, and Rs.50 per day for the subsequent days of delay.

Frequently Asked Questions about FORM GSTR-4

Who is eligible to file FORM GSTR-4?

Taxpayers who have opted for the Composition Scheme under the GST regime are required to file GSTR-4.

Eligibility for filing GSTR-4: The following taxpayers are eligible to file GSTR-4:

  • Taxpayers who have opted for the Composition Scheme under the GST regime for the entire financial year
  • Taxpayers who have opted for the Composition Scheme for any part of the financial year

FORM GSTR-4 is specifically designed for taxpayers who have opted for the Composition Scheme under GST. It is not applicable to regular taxpayers or those registered under the Input Tax Credit mechanism.

What is the due date for filing FORM GSTR-4?

The due date for filing GSTR-4 is 30th April following the relevant financial year. The due date for filing FORM GSTR-4 is the 40th day of the April month following the end of the FY. For example, the due date for the FY 2023-24 is April 30, 2024.

Is it mandatory to file FORM GSTR-4?

Yes, it is mandatory for taxpayers registered under the Composition Scheme to file FORM GSTR-4. Failure to do so can result in penalties and compliance issues.

What are the penalties for late filing of GSTR-4?

The penalty for late filing of GSTR-4 is Rs.100 per day for the first 15 days of delay, and Rs.50 per day for the subsequent days of delay.

How can I file GSTR-4 online?

You can file GSTR-4 online through the GST portal. Follow the steps mentioned above to file the return online.

Can I file GSTR-4 offline?

No, you cannot file GSTR-4 offline. You are required to file it online through the GST portal.

In Conclusion

FORM GSTR-4 is a significant relief for businesses registered under the Composition Scheme, simplifying the GST return filing process and reducing compliance burdens.

By following the step-by-step guide and understanding the benefits and eligibility criteria, taxpayers can now navigate their way through the tax system more effectively and ensure better compliance with GST regulations.


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