How to File GST Composition Return Online?

Who Cannot Opt for Composition Scheme?

Given below is a list of the people who can’t opt for a composition scheme -

• Ice cream, PAN masala, and tobacco manufacturers.
• A person involved in making interstate supplies.
• A non-resident taxable person or a casual taxable person.

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What are the Prerequisites to File GSTR-4 on the GST Portal?

What is GSTR-4?

GSTR-4 is a GST return form that has to be submitted annually if they have opted for the composition scheme. Under the GST composition scheme, taxpayers have to file a return once every year.

Also, taxpayers are required to file CMP-08 to make payments in every quarter of the year. This form must be filed by the 18th of the month immediately following the quarter.

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How to File GSTR-4 on GST Portal?

Given below are the steps to file GSTR-4 on the GST portal -

• Step 1. Login to the GST Portal and click on Services > Returns > Annual Returns from the top menu bar.
• Step 2. Next, on the ‘File annual returns’ page, select the relevant financial year for which you are filing the GSTR-4.
• Step 3. Read all the instructions given on the ‘File returns’ page carefully. On the Annual Return GSTR-4 tile, click on the ‘Prepare Online’ button.
• Step 4. Enter the aggregate turnover in the previous year and click on the ‘SAVE’ button. In case there was no turnover in the previous year, then enter Zero in the field for turnover. Make sure not to leave it blank. A message is displayed saying that the data was saved successfully.
• Step 5. In order to file a nil GSTR, simply click on the ‘file a nil GST return’ check box and then click on ‘Proceed to File.’ In this way, you can go directly to steps 7 and 9.
  Note: You can skip step 5 if you are not filing a nil GSTR.
• Step 6. Every time, select the tables for which you want to add/view the details from the drop-down menu and click on the ‘Back’ button. Enter the details of the various tables of GSTR-4 as explained below -
  Table 4A - It consists of inward supplies from registered suppliers.
  It contains the GSTIN-wise details of purchases from the GST-registered suppliers. Add the GSTIN, as it helps auto-populate the place of supply and legal name, and click on ‘+’ for every new entry.
  Under the item details field, enter the taxable value and choose the GST rate. mandatorily.
  Table 4B - It covers the inward supplies from a registered supplier (reverse charge mechanism). GSTIN-wise details of purchases from suppliers subject to reverse charge mechanism and registered under GST. Now, add the GSTIN on the basis of which the system auto-populates the legal name and the place of supply, and click on the + button.
  Table 4C - It covers inward supplies from unregistered suppliers. Enter the PAN-wise details of the purchases from unregistered suppliers. Entering PAN is not mandatory. Therefore, you can also enter the legal name of the supplier. Select the checkbox if a reverse charge is applicable. Also, select the ‘Supply type’ as inter-state or intra-state.
  Table 4D - It covers the import of service. It consists of the details of the services imported on which IGST has already been paid. Click on the + button to add items. Enter the taxable value, GST rate, and the place of supply.
  Table 5 - Table 5 presents the summary of the CMP-08 form. It consists of an auto-drafted summary filed for all 4 quarters of the financial year.
  Table 6 - It consists of the outward and inward supplies attracting reverse charge based on tax rates. The user needs to input the sales values in rows 12 to 16 of a predefined table based on the applicable GST rates (0%, 1%, 2%, 5%, or 6%) for a composition taxpayer. These values should be the net amount after considering advances, credit/debit notes, and adjustments due to amendments.
  The inward supplies attracting reverse charge, as shown in tables 4A, 4B, and 4C, do not get displayed in rows 1-11.
  Table 7. It views TDS/RCS credit received. This table is auto-drafted based on the GSTIN details of the TCS/TDS credit received during the year. This information cannot be edited.
• Step 7. In the next step, you can view the saved return by clicking on the ‘Proceed to file’ option. The return status will change to ‘Ready to file as on (date).’
  Either click on ‘download GSTR-4 summary’ or download GSTR-4 (excel) to save a copy of the return for your record.
• Step 8. Make any late fee, tax, or interest payments displayed in Table 8. You can either pay by creating a challan if the cash in the electronic ledger is not sufficient for part/full payment. Select NEFT/RTGS as the desired mode of payment and generate a challan after payment.
  You can also make the payment through the electronic cash ledger if it has sufficient balance for payment. The cash is automatically adjusted from your ledger for the tax payment automatically. Either click on the download GSTR-4 summary (PDF) button or download the GSTR-4 summary (excel) to review the GSTR-4 and proceed further.
• Step 9. Now, in the last step, file the GSTR-4 return using the EVC or DSC. At the bottom of the tax payment page, select the declaration checkbox and the authorized signatory. Then, select the ‘File GSTR-4’ button. Confirm your submission by clicking Yes on the warning message and either click on ‘File with EVC’ or ‘File with DSC’ button on the ‘File return’ page.

Understanding GST filing is crucial for businesses. However, GST is a complex law and consists of a lot of provisions. Having said that, it is also common to have a lot of queries concerning the same. Therefore, you must consider seeking consultation from tax experts regarding your GST-related problems. Staying informed and compliant can help propel your business forward with tailored expertise. If you have questions or need assistance navigating the nuances of GST, reach out to our experienced tax professionals for dedicated support.

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