What is GSTR-4 Return Filing?

GSTR-4, which stands for Goods and Services Tax Return, is basically a type of GST Return that taxpayers (usually Composition Dealers), who have opted for the GST Composition Scheme, file the return on a quarterly basis. As with several other return filings, GSTR-4 is filed and submitted online on the government GST portal.

Generally, a Composition Dealer who has opted for GST Composition Scheme is required to file one return i.e. only GSTR-4, which is done quarterly. This is in contrast to normal taxpayers who are usually required to file three monthly returns.

In a recent meeting of the GST Council body, the duration of filing GSTR-4 return has been changed to filing annually. All businesses who have opted for the composition scheme are going to be filing Form GST CMP-08 applicable from April 2019 for the fiscal year 2019-20. Form GST CMP 08 may be a self-assessed return-cum ‘challan’ to be filed quarterly. For the amount before April.2019, GSTR-4 as a quarterly return is going to be applicable. Under the GST composition scheme, taxpayers are going to be required to file one only return in every three months (quarter) instead of multiple returns monthly as is that the case for a daily dealer.

However, not all businesses are going to be eligible to register under the GST composition scheme. Only those business entities, for whom the annual turnover is below Rs. 1.5 crores and who also fulfil other specified criteria are often entitled to register under the GST Composition Scheme. One of the critical points to be noted here are that dealers under the GST composition scheme are going to be required to pay taxes at fixed rates, without availing input decrease facility.

Eligibility – Who Should File GSTR-4?

As per the Goods and Services Tax (GST) Act, 2017, and the GST Council, GSTR-4 must be filed only once and quarterly by any taxpayer who is a Composition Dealer and who has opted for the GST Composition Scheme.

Persons who do not include here are listed below:

• Non-resident Taxable Person
• Taxpayers liable to collect TCS (Tax Collected at Source)
• Taxpayers libale  to deduct TDS (Tax Deducted at Source)
• Input Service Distributors (ISD)
• Compounding taxable person
• Suppliers of Online Information and Database Access or Retrieval (OIDAR)

Format and Procedure of Filing GSTR-4 Online

In the GSTR-4 form, the taxpayer is going to be required to point out the entire value of supplies made during a specific period and tax paid at the composition rate. Earlier, the taxpayers were required to insert invoice- level purchase details for the purchases from normal taxpayers, which can be automatically updated via the GSTR-4A form, generated from the availability invoices uploaded by the other party in GSTR-1. Following the concerns raised by the taxpayers, GSTR-4A was suspended.

At present, the Form CMP-08 is mandated to be filed quarterly and GSTR-4 to be filed once only, i.e. annually.

Filing GSTR-4

With GSTR-4 being made as an annual return, it expected that the shape are going to be simplified and new provisions as needed for annual return are going to be incorporated.

The following will guide you with the small print supported the present GSTR-4 format. The GSTR-4 return form is split into the subsequent 13 sections, however, it is not mandated to fill every section.

(a) GSTIN: The taxpayer’s GSTIN is going to be auto-populated at the time of GSTR-4 return filing.

(b) Name of the Taxable Person: The taxpayer’s name will be auto-populated at the time of logging into the common GST portal.

(c) Aggregate Turnover: Here, the taxpayer is required to furnish details of the previous year’s aggregate turnover, and therefore the aggregate turnover for the duration of April-June, 2017 (for the primary GSTR-4 filing). These fields are going to be auto-populated for the returns of October to December period.

(d) Inward Supplies including supplies on which tax is to be paid on reverse charge: All purchases or inward supplies made by a business must be mentioned here, including:

• Inward Supplies from Unregistered Persons
• Inward Supplies from Registered Supplier (Attracting Reverse Charge)
• Inward Supplies from Registered Supplier (Other than Reverse Charge)
• Import of Services (subject to Reverse Charge)

(e) Amendments to details of inward supplies furnished reciprocally for earlier tax periods in Table 4 (including Debit Note/Credit Notes and their subsequent amendments): Any change within the details of inward supplies for earlier tax periods are often made here. The small print of an invoice which must be corrected like invoice amount, amount of tax, etc. should be mentioned during this table. Also, a Debit Note or a Credit Note issued by the taxpayer has got to be entered here. It will include amendment information mentioned in earlier tax periods and also original amended of debit or credit note received, rate-wise.

(f) Tax on outward supplies made (net of advance and goods returned): All sales made by composition dealer got to be entered during this table. The entire value of all the bills of supply raised during the quarter has got to be entered within the turnover field. The GST amount has got to be segregated into CGST and SGST/UTGST. Under this section, one is required to provide the small print of outward supplies which incorporates advance and net of products returned during the present tax period.

(g) Amendments in Outwards Supply details furnished in returns for earlier tax periods in Table No. 6: Any change to be made to details of sales provided in previous returns is required to be stated here alongside original details. Under this section, one is going to be ready to rectify the wrong details provided in Table 6 in previous returns.

(h) Consolidated Statement of Advances paid/Adjusted on Account of Receipt of Supply: All advances purchased reverse-charge supplies need to be specified here. Also, all advances paid on which tax was paid within the past but invoice is received within the current period should be entered in Table 8. This amount is going to be reduced from the entire liabilities. All amendments to be made to advances mentioned within the previous period’s return should even be entered.

(i) TDS Credit received: Any TDS deducted by the supplier while making payment to the composition dealer has got to be entered into this table. GSTIN of the deductor, Gross Invoice value and therefore the TDS amount should be mentioned here.

(j) Tax payable and paid: Total liabilities and therefore the tax paid has got to be laid out in this table. IGST, CGST, SGST/UTGST and Cess need to be separately mentioned here.

(k) Interest, Late Fee payable and paid: Interest and late fees payable for late filing or late payment of GST need to be mentioned here, including details of payment actually made.

(l) Refund claimed from Electronic cash ledger: Any refund of excess taxes paid are often claimed here. The refund has got to be further segregated into tax, interest, penalty, fees, etc. If, in case, the liabilities of the composition dealer is lesser than the TDS deducted, then one can get a refund of the balancing amount. The quantity which is out there for refund is going to be auto-filled under this section.

(m) Debit entries in cash ledger for tax/ interest payment (to be populated after payment of tax and submission of return): All GST payments made in cash reflect here. The payments need to be further segregated into tax paid through cash, interest paid and late fees paid.

After the above-mentioned details are filled and duly signed (e-signature) with a declaration that every information has been supplied and is correct. Additionally, the GST portal is available with a GSTR-4 offline tool that supports Excel worksheets, for simple GSTR-4 return filing.

Important Rules and Regulations to Remember when Filing GSTR-4

Due Date for Filing GSTR-4

The GST Council issues the due date for the filing of GSTR-4 return, which must be furnished by taxpayers who are Composition Dealers registered under the GST Composition Scheme.

The due date for filing GSTR-4 was 18th of the month-end after the top of the quarter. Now, GSTR-4 is required to be made annually. It should be filed by 30^th April for each fiscal year by the composition dealers. On a quarterly basis, Form GST CMP-08 must be filed by the 18th of the month after the top of the quarter.

However, it should also be noted that the GST Council may bring about necessary changes in the due date for GSTR-4 return filing when required and the same shall be announced to taxpayers.

Penalty and Late Fees

A penalty of Rs. 200 per day is imposed up to a maximum penalty of Rs. 5,000, if GSTR-4 is not filed on or before the specified due date.