Under the Goods and Services Tax (GST) regime in India, small taxpayers have the option to enroll in the Composition Scheme—a simplified tax structure aimed at reducing compliance. Businesses with turnover up to ₹1.5 crore (or ₹75 lakh for certain special category states) can opt for this scheme and benefit from lower tax rates and fewer return filings. One of the main compliance requirements under this scheme is filing GSTR-4, the annual return.
What is GSTR-4?
GSTR-4 is the annual return that must be filed by taxpayers registered under the Composition Scheme. Unlike regular taxpayers who need to file monthly returns, composition dealers are only required to file:
- CMP-08 quarterly (to pay tax)
- GSTR-4 annually (to summarize the year)
This structure is designed to ease the burden of compliance for small businesses.
New Due Date for GSTR-4 Filing
Starting from the financial year 2024-25, the due date for filing GSTR-4 has been extended to 30th June, following the end of the financial year. This change was notified in the CGST Notification 12/2024 dated 10th July 2024
As Per Notification:
in rule 62, after sub-rule (1), the following proviso shall be inserted, namely:–―Provided that the return in FORM GSTR-4 for a financial year from FY 2024-25 onwards shall be required to be furnished by the registered person till the thirtieth day of June following the end of such financial year.
Who Must File GSTR-4?
The following taxpayers are required to file GSTR-4:
- All composition dealers registered under the GST Composition Scheme
- Service providers who have opted for the special composition scheme (introduced via notification in 2019)
There is no turnover threshold for filing this return—it is mandatory for all taxpayers under the scheme.
Late Fees and Penalties
If GSTR-4 is filed after the due date, the following late fees apply:
- ₹50 per day of delay (₹25 CGST + ₹25 SGST), capped at ₹2,000
- For nil returns, the late fee is limited to ₹500 (₹250 CGST + ₹250 SGST)
This is a significant relaxation compared to the earlier penalty of ₹200 per day, capped at ₹5,000.
What’s Included in GSTR-4?
GSTR-4 consists of the following details:
- Basic Information – Auto-filled GSTIN, legal name, and trade name
- Inward Supplies – Purchases from registered and unregistered persons, including reverse charge cases
- Outward Supplies – Sales and services provided during the year
- Tax Liability Summary – Auto-filled based on CMP-08 filings
- TDS/TCS Credit – If any TDS/TCS was deducted, details can be claimed here
- Tax Paid Summary – Total tax, interest, and late fees paid
Can GSTR-4 Be Revised?
No. Once filed, GSTR-4 cannot be revised. It is crucial to thoroughly verify all details before submission to avoid errors.
How to File GSTR-4?
Steps to file GSTR-4:
- Log in to the GST portal
- Go to Services > Returns > Annual Return
- Select the appropriate financial year
- Click Prepare Online
- Fill in the necessary details
- Review all entries carefully
- Submit using a DSC (Digital Signature Certificate) or EVC (Electronic Verification Code)
GSTR-4 is an essential return for all composition dealers. With the relaxed due date and simplified format, the return is easier to file compared to monthly returns required from regular taxpayers. Ensuring timely and accurate filing not only helps maintain compliance but also protects businesses from avoidable penalties.
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