What is GSTR-4?
GST was introduced to amplify transparency and uniformity in taxation, and its impact has been nothing short of exemplary. GST registration and return filing procedures have made filing taxes easier than ever, helping the business sector greatly. Moreover, as a taxpayer, calculating taxes is extremely easy now, as you only need to know how to calculate GST. The calculation is more straightforward because this one comprehensive tax has absorbed several others. As a result, there is a limited possibility of you making mistakes too.
Various forms have been created to help taxpayers comply with GST requirements. One such form is the GSTR 4 form. Read this guide to understand all that there is to this form.
Understanding form GSTR 4
Every taxpayer who has opted for the composition scheme under the GST regime needs to file GSTR 4. This composition scheme allows you to pay GST according to a fixed turnover rate instead of the regular GST deadlines. While a typical taxpayer provides three monthly returns, a composition taxpayer hands over only one GSTR 4. The GSTR 4 form needs to be filed quarterly, on the 18th of last month in the quarter. Further, as a taxpayer under the composition scheme, annual return GSTR-9A will need to be filed on or before the 31 of December in the succeeding financial year.
When is GSTR-4 due?
GSTR-4, the annual return, must be filed by taxpayers on an annual basis. The due date for filing GSTR-4 is the 30th of April following the relevant financial year. For instance, for the financial year 2023-24, GSTR-4 is due by 30th April 2024. Previously, until the financial year 2018-19, the due date was the 18th of the month following the end of the quarter.
Who should file GSTR-4?
GSTR-4 is to be filed by taxpayers opting for the composition scheme. This also encompasses service providers under the special composition scheme notified vide CGST (Rate) notification number 2/2019 dated 7th March 2020, effective from the financial year 2019-20.
Eligibility criteria for GST’s composition scheme
- A business’ turnover needs to be below Rs. 1 crore to opt for this composition scheme. If you reside in Himachal Pradesh or the North-Eastern states, your turnover must be below Rs. 75 lakh. You must consider all businesses registered under the same PAN to opt for the composition scheme.
- To calculate the turnover, all businesses registered under the same PAN must be considered, or the composition scheme cannot be selected.
- All notice boards at the business address mention ‘composition taxable person’. This same phrase also needs to be mentioned on every bill of supply that you issue.
- If you are a supplier of goods, you can provide services only to the limit of Rs. 5 lakh.
- Businesses with an intra-state supply of goods are eligible for the GST composition scheme.
- Dealers are not allowed to claim the input tax credit or collect composition tax.
However, certain entities cannot opt for the composition scheme. The list of restricted entities includes:
- Service providers
- Any supplier other than those related to restaurant businesses
- A regular or non-resident taxable person
- Any business supplying goods using an e-commerce operator, tobacco and pan masala manufacturers, and ice-cream manufacturers
- Supplier of GST-exempted goods
- Supplier of inter-state goods
- Supplier of non-taxable goods
For individuals and entities not eligible under the composition scheme, the tax liability will be tax + interest and penalty, equal to the tax amount.
What is the GSTR 4 format?
The GSTR 4 form is a document that helps taxpayers under the Composition Scheme to report their GST-related activities. This form is divided into 9 tables, each with a specific purpose, and helps the taxpayer accurately report their taxes. Here is a breakdown of each table in simple terms:
Tables 1-3: Basic information
The first 3 tables are designed to capture basic details about the taxpayer. These details are automatically filled in based on the GSTIN (Goods and Services Tax Identification Number) of the taxpayer. Here is what is included in these tables:
- GSTIN: This is the unique identification number assigned to every GST-registered business. It is essential for all GST-related processes
- Name: The name of the business or individual
- Aggregate turnover: This refers to the total turnover of the business in the previous financial year. This helps determine whether the business qualifies for the Composition Scheme
- Application Reference Number (ARN): This is a reference number generated when the taxpayer applies for GST registration or when they file their return. It is automatically filled in when the taxpayer logs into the portal
- ARN date: The date on which the ARN was issued
These fields are auto-populated, so the taxpayer does not need to manually enter them.
Table 4: Inward supplies
Table 4 is used to report the inward supplies, i.e., purchases made by the taxpayer. This table is further divided into four sections:
- 4A: This section records the supplies received from registered suppliers, where reverse charge does not apply. Reverse charge means that the recipient, not the supplier, is responsible for paying the tax. This section includes both interstate (between states) and intrastate (within the same state) supplies
- 4B: This section records supplies received from registered suppliers that are subject to reverse charge. In such cases, the taxpayer has to pay the GST instead of the supplier
- 4C: This section covers supplies received from unregistered suppliers. Again, this can be both interstate and intrastate supplies
- 4D: This part focuses on taxable import services that are subject to reverse charge. If the taxpayer imports services, they need to mention these here
Table 5: Summary of liability
Table 5 provides a summary of the taxpayer’s liability. This means it shows how much tax is due for the period, based on the information entered in the previous tables. The details in this table are auto-filled from Form GST CMP-08, which is used for self-assessment of the taxpayer’s liability. This section includes:
- Taxes on inward supplies attracting reverse charge
- Taxes on outward supplies (sales made by the taxpayer)
- Interest paid on late payments
- The total tax amount that the taxpayer needs to pay
Table 6: Outward supplies
Table 6 records the outward supplies, or sales made by the taxpayer, including any inward supplies that are subject to reverse charge. This table asks for the following details:
- Tax rate: The GST rate applicable on the sale or supply made
- IGST, CGST, SGST, and cess: These are the various types of taxes under GST:
- IGST (Integrated GST) is applicable on interstate supplies (sales made between different states)
- CGST (Central GST) and SGST (State GST) are applicable on intrastate supplies (sales within the same state)
- Cess is an additional tax on certain goods and services
These fields are used to calculate the total taxes the taxpayer needs to pay on their sales.
Table 7: TDS/TCS details
Table 7 is used to report the details of Tax Deducted at Source (TDS) and Tax Collected at Source (TCS). These taxes are deducted or collected by other parties, such as suppliers or e-commerce operators. The following details are required here:
- GSTIN of the deductor/operator: The GSTIN of the person who has deducted or collected the tax
- Gross invoice value: The total value of the invoice before taxes
- TDS amount: The amount of tax that was deducted from the invoice
This table helps the taxpayer report any TDS or TCS that has been collected or deducted on their behalf.
Table 8: Tax, interest, and late fee
Table 8 outlines the amounts payable or already paid for taxes, interest, and late fees. It includes the following:
- Payable tax amount: This is the total tax due for the period, which is auto-filled from Table 6 (Outward Supplies)
- Tax amount paid: This shows the tax amount already paid as per Form GST CMP-08
- Balance tax payable: If the tax paid is less than the payable amount, this will show the remaining tax that the taxpayer still needs to pay
- Interest payable and paid: If the taxpayer has paid taxes late, this section will show the interest on the delayed payment
- Late fee payable and paid: If the taxpayer has delayed the filing of the return, they will need to pay a late fee. This section will show the late fee payable and any late fees that have already been paid
Table 9: Refund claims
Table 9 is for taxpayers who want to claim refunds for excess taxes paid. This can happen if the taxpayer has paid more tax than required or has a balance after tax adjustments. The refund amount is broken down into different categories:
- Tax: Refund on excess tax paid
- Interest: Refund on excess interest paid
- Penalty: Refund on any penalties paid
- Fee: Refund on fees paid
- Others: Any other refund claims related to the GST payment
Taxpayers can use this table to claim refunds for any excess payments made during the period.
Here are the 13 components that make up the GSTR 4 form
- The GSTIN of the person filing the return. This is auto-populated.
- Name of the taxpayer. This is also auto-populated once you sign in to the portal.
- Details of the total turnover of the previous financial year will need to be filled in by you. Thereon, this field will be automatically auto-populated with the closing balance for each succeeding form.
- Details of inward supplies, including those eligible for a reverse charge, are also part of GSTR components.
Inward supply details include the following:
- Inward supplies from unregistered persons.
- Inward supplies from registered suppliers (attracting reverse charge).
- Inward supplies from registered suppliers (other than reverse charge).
- Import of services (subject to reverse charge).
- Any revisions to inward supply details, including credit and debit notes, stated in returns for a previous tax period.
- Taxes on outward supplies made, including advance and goods returned, during the tax period you are filing returns for.
- Any revisions on outward supplies details mentioned in previous GSTR 4 returns, for earlier tax periods.
- Any advances that you have paid for reverse charge supplies are to be listed in this section. Also, any taxes paid on advances that you paid earlier but received the invoice for only now, should be mentioned here.
- Any received TDS credit. This table will require details such as the GSTIN of the deductor, TDS amount, and the gross invoice value.
- Total tax liability and tax payment made with segregation according under heads of cess, CGST, SGST, IGST, and UTGST.
- Any payable or paid interest and late fees (including details of the same).
- For excess taxes paid by you in the past, refund claims can be made in this section. You can claim a refund under the sections of tax, interest, penalty, fees, and others.
- All payments made in cash, including tax, interest, and late fees, must be listed here.
How to file GSTR 4 online
Just like other GSTR forms such as GSTR 1 and GSTR 3B, you can file GSTR 4 returns online.
GSTR 4 online filing can be done on the official GST portal through these steps:
Log in to the GST portal with your email id and password.
Additional read: GST Return Filing Process Explained
- Click on ‘services’, go to ‘returns’ and select ‘returns dashboard’.
- Select the financial year and the period of filing.
- Click on ‘prepare online’ under ‘quarterly return GSTR 4’.
- Upon doing so, you will get a list of questions to show the relevant sections of the GSTR returns, which you need to answer in ‘yes’ or ‘no’. Then, click ‘next’.
- Note that only sections for which you chose ‘yes’ are displayed. Key in the details for the applicable tax period for each of the sections displayed.
- Next, click on ‘preview’ to view the submitted details and download a PDF of the summary of the details entered.
- Click on ‘Proceed to file’ for calculating the applicable tax, interest, and late fee.
- Click ‘table 10 and 11’ to pay the tax, interest, and late fee.
- You can file returns with either of these two options: ‘file GSTR 4 with digital signature certificate (DSC)’ or ‘file GSTR with electronic verification code (EVC)’.
- Once done, a success message is displayed with the acknowledgement reference number (ARN). Simultaneously, a confirmation message is sent to your registered mobile number and email, and your filing status changes to ‘filed’.
You can also file GSTR online using other software by importing data directly to the relevant columns.
Filing GSTR 4 online: What you need to keep in mind
Here are a few points to remember while filing your GSTR 4.
- If you do not file the GSTR 4 by the due date, you are liable to pay a late fee. The fee is of Rs. 50 per day post the GSTR 4 due date or Rs. 20 per day in case of a nil return, up to a total of Rs. 5,000.
- If you miss filing your GSTR 4 for a particular quarter, you will not be able to file GSTR 4 for the next quarter.
- You can use a third-party software to file GSTR 4.
- You will not be allowed to revise your GSTR 4 form in the same return. Thus, it is important to double-check your form before submission. You can only make revisions when filing the GSTR 4 for the next quarter.
Additional read: How to log in to the GST portal?
Fee and penalty for late GSTR 4 online filing
Note that you need to pay a penalty of Rs. 200 per day if you fail to file GSTR 4 within the due date. The maximum fee that can be charged is Rs. 5000. Also, if you do not file GSTR 4 of one quarter, you cannot file it for the next quarter as well. So, it is essential to submit your GSTR 4 returns within the stipulated period for each quarter.
There is an increase in the minimum threshold for enrolling in the composition scheme from the earlier Rs. 1 crore to Rs. 1.5 crores. This will lead to more business entities can opt for this scheme and the number of GSTR 4 filings is expected to go up in the coming days.
Difference between Form GSTR-4 and Form GSTR-4A
Aspect |
Form GSTR-4 |
Form GSTR-4A |
Filing Frequency |
Annual |
Auto-drafted, no filing required |
Purpose |
Provides summary of outward supplies, tax paid, ITC reversed, etc. |
Provides details of inward supplies from suppliers |
Filing Requirement |
Mandatory for composition scheme taxpayers |
Auto-generated, no filing required |
Content |
Includes turnover, tax paid, invoices, etc. |
Includes purchases from registered suppliers |
Corrections |
Amendments can be made in next financial year's return |
Timely intimation to suppliers is necessary for rectification |
Due Date |
30th of the month following the financial year end |
No relevance, as no filing required |
Form GSTR-4 is filed annually by taxpayers under the composition scheme, providing a summary of their transactions. In contrast, Form GSTR-4A is auto-drafted, compiling details of inward supplies from suppliers, with no requirement for filing.
