GSTR-4 Return Filing: Due Date, Late Fees, Turnover Limit & Applicability

What is GSTR 4 Annual Return?

GSTR-4 is the annual return form that captures details of inward and outward supplies for composition dealers. Introduced through the Third Amendment to the GST Rules, 2017, in 2019, taxpayers were initially required to file GSTR-4 quarterly until the financial year 2018-19. However, Form GST CMP-08 replaced the quarterly filing, and GSTR-4 became an annual return.

By choosing the Composition Scheme, taxpayers can file GSTR-4 once a year, unlike regular taxpayers who submit returns on a monthly or quarterly basis.

GSTR-4 Due Date

GSTR-4 is an annual return that must be filed by 30th April following the relevant financial year. For instance, the GSTR-4 for FY 2023-24 was due by 30th April 2024. Prior to FY 2018-19, the due date was the 18th of the month following the quarter's end.

However, the 53rd GST Council meeting brought a key update. From FY 2024-25 onwards, the deadline to file GSTR-4 has been extended to 30th June of the following financial year, as per CGST Notification 12/2024 dated 10th July 2024.

Who Needs to File GSTR-4?

A taxpayer who chooses the composition scheme must file GSTR-4. Therefore, there is no specific turnover limit for filing GSTR-4. This requirement also includes the special composition scheme for service providers, as notified in the CGST (Rate) Notification number 2/2019 dated 7th March 2020, effective from FY 2019-20.

How to File GSTR-4

You can easily file GSTR-4 online on the GST portal by following these steps:

1. Log in to the GST portal.
2. Navigate to Services > Return > Annual Return.
3. Under the File Annual Return button on the dashboard, select the relevant financial year.
4. Carefully read the instructions on the page, then choose the Prepare Online option.
5. Fill in the relevant details in the various sections of GSTR-4.
6. Once you've entered the details, review your updated GSTR-4 by clicking on either Download GSTR-4 Summary (PDF) or Download GSTR-4 (Excel).
7. Select the declaration checkbox, choose the authorized signatory, and click the File GSTR-4 button.
8. A warning message will appear. Select Yes, then choose either File with DSC or File with EVC.

After completing these steps, the return status will change to "Filed," and you will receive an Application Reference Number (ARN) along with a confirmation message via SMS or email registered on the GST portal.

GSTR-4 Late Fees and Penalty

According to the latest update, a late fee of ₹50 per day is now applicable, capping at a maximum of ₹2,000. If the tax liability is nil, the maximum late fee is reduced to ₹500. Previously, a late fee of ₹200 per day was imposed if GSTR-4 was not filed by the due date, with the maximum late fee not exceeding ₹5,000.