In this article we discuss about the Form GSTR-4 which is used to file GST return for registered persons who opt compositions scheme under GST. A person opting composition scheme under GST will have to pay tax quarterly basis and also file return on quarterly basis.

As per Notification No. 20/2019-CT dated 23-04-2019:-

  1. Composition taxable persons are now required to file GSTR-4 on Annual Basis till 30th April every year.
  2. Composition taxable persons are required to pay tax quarterly till 18th of month succeeding the quarter by filling Form GST CMP-08
  3. Note:- Above amendment also applies to such Service Providers who opt Composition Scheme (Turnover upto INR 50 Lakhs, Rate-6%, No inter-State supplies.) 

Section 39(2) of the CGST Act, 2017 read with Rule 4

A registered person paying tax under the provisions of section 10 shall, for each quarter or part thereof, furnish, in such form and manner as may be prescribed, a return, electronically, of turnover in the State or Union territory, inward supplies of goods or services or both, tax payable and tax paid within eighteen days after the end of such quarter.

Turnover Limit for Composition dealer under GST:-

  • Service Provider:- Rs. 50 Lakh per annum
  • Traders and Manufacturer (Goods):- Rs. 1.5 Crore per annum

Details to be furnished in Form GSTR-4:-

  • Inward supplies including the supplies on which tax is to be paid on reverse charges basis:-Invoice wise detail whether it is inter-state or intra-state inward supplies received from registered and unregistered persons.
  • Consolidated figure of outward supplies made (Net of advance and goods returned)
  • Debit or credit note issued and received
  • Amendment to detail of inward supplies and outward supplies furnished in return for earlier tax periods (including Debit or credit note amendments)

Late fees for late filling of GSTR-4 return:-

If a registered person who opt Composition scheme does not file returns within the due date, he shall be liable to pay late fees Rs. 50/- day i.e. Rs. 25 per day in each CGST and SGST (in case of any tax liability) and Rs. 20 per day in each CGST and SGST (in case of Nil tax liability) subject to maximum of Rs. 5000/-, from the due date to the date of when the returns are actually filled. There is no late fees under IGST.

Form GSTR-4 is to be filled by registered taxable person other than the following persons:-

  • Input Service Distributor (ISD)
  • Non-resident taxable person
  • A registered taxpayer who opt Composition Scheme
  • Government authority, Local authority, Government agency or such person as may be mandated by the Government to deduct TDS under section 51.
  • E-commerce operator liable to collect TCS under section 52.

Other Points to be noted:-

  • GSTR-4 return is to be filled electronically through Common portal, either directly or through a Facilitation Centre notified by the Commissioner.
  • A registered person who opt Composition scheme are not eligible for any ITC (Input tax credit).
  • A Composition dealer cannot charge any tax from the customers whether these customers are registered or not under GST.
  • A composition dealer has to file Annual return by using Form GSTR-9A.
  • A Composition dealer has to issue Bill of Supply and they cannot issue tax invoice.
  • A Composition dealer cannot make inter-state supplies. If composition dealer is involved in making inter-state supply then they have to opt out from composition scheme.
  • There is no option to revise the GSTR-4 return. Only you can do corrections or amendment in next period return for the pervious return.