Annual Return for Composition Scheme
Introduction
GSTR-4 is the annual GST Return that must be filed by a composition dealer. Unlike a regular taxpayer who is required to furnish 2 monthly returns and an annual return (with certain exemptions), a dealer opting for the composition scheme is required to furnish one return every quarter in Form CMP-08 and Form GSTR 4 once a year following the financial year.
Such taxpayers are required to furnish details regarding summary of outward supplies, Inward supplies, import of services and supplies attracting reverse charge etc. in this form.
Who needs to file Form GSTR-4 (Annual Return)?
All taxpayers who have opted for composition scheme under GST, for any period during the financial year, need to file Form GSTR-4 (Annual Return). This will include a taxpayer
- Registered and opted for the composition scheme at least one day during the relevant financial year.
- Filed all the relevant form CMP-08 statements for all the quarters of the fiscal year.
- Make a note of the aggregate turnover registered for the preceding fiscal year.
- Turnover Limit: The composition scheme is open to businesses with an annual turnover up to INR 1.5 Crore for certain States and INR 75 Lakh for special category States. Nature of Business: Not all businesses are eligible to avail composition schemes.
Due Date for filing GSTR 4
The due date for filing GSTR-4 is 30th of April following the relevant financial year*. For example, the GSTR-4 for FY 2023-24 was due by 30th April 2024. Until the FY 2018-19, the due date was 18th of the month following the end of the quarter.
However, in the 53rd GST Council meeting, the Council recommended that the deadline to file GSTR-4 for a financial year will be extended from 30th April to 30th June of the succeeding financial year from FY 2024-25 onwards. This change was thereafter notified in the CGST Notification 12/204 dated 10th July 2024.
GSTR-4 late fees and penalty
Late fee of Rs.50 per day is charged up to a maximum of Rs.2,000. Where the tax liability is nil, the maximum late fee is Rs.500.
