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GSTR4 Return Filing, Format, Eligibility & Rule

What is GSTR – 4

Under the GST composition scheme, taxpayers will be required to file one only return in every three months (quarter) rather than multiple returns in every month as is the case for a regular dealer.
However, the eligibility of this system is not available for all businesses but to only those business entities, for whom the annual turnover is below INR 1.5 Crore and further other specified criteria entitled to register under the Composition Scheme.
One of the key points to be noted here is that dealers under the composition scheme will be required to pay taxes at fixed rates, without availing input tax credit facility.
Originally, Form GSTR-4 was a quarterly return form for those taxpayers who have opted to go for the GST Composition Scheme in the new indirect tax regime. In the latest GST council meeting, the periodicity of GSTR-4 is changed annually.

Who should do GSTR – 4 filing?

Any taxpayer opting for the Composition Scheme is required to do GSTR-4 filing, except for:
• Non-resident Taxable Person
• Taxpayers liable to collect TCS
• Input Service Distributors
• Taxpayers liable to deduct TDS
• Compounding taxable person
• Suppliers of OIDAR (Online Information and Database Access or Retrieval)

When is the GSTR – 4 last date?

The due date for filing GSTR 4 was the 18th of the following month after the end of each quarter. Now GSTR-4 is being made annually, it should be filed by 30th April for every financial year by the composition dealers.

What if GSTR – 4 filing is not done?

A penalty of INR 200 per day is levied, up to a maximum penalty of INR 5,000 if GSTR-4 is not filed.

How to revise GSTR – 4?

GSTR-4 cannot be revised after filing on the GSTN Portal.
What is in the GSTR – 4 Format?
In the GSTR-4 form, the taxpayer will be required to show the total value of supplies made in a specific period and tax paid at the composition rate.

In a change to the current practices, the taxpayers were required to insert invoice-level purchase details for the purchases from normal taxpayers, which will be automatically updated via the GSTR-4A form, generated from the supply invoices uploaded by the opposite party in GSTR-1.

Following the concerns raised by the taxpayers, GSTR-4A was suspended.

How to file GSTR-4?

With GSTR-4 being made as an annual return, it is expected that the form will be simplified and new provisions as required for annual return will be incorporated.

The below section will guide you with the details based on the current GSTR-4 Format. The GSTR-4 return form is divided into the following 13 sections, but it is not necessary to fill all these sections:

GSTIN: The taxpayer’s GSTIN will be auto-populated at the time of GSTR-4 return filing
Name of the Taxable Person: The taxpayer’s name will also be auto-populated at the time of logging into the common GST Portal

Aggregate Turnover:

In this section, the taxpayer has to furnish details of the previous year’s aggregate turnover, and the aggregate turnover for the period of April-June, 2017 (for the first GSTR-4 filing). These fields will be auto-populated for the returns of the October to December period.
Inward Supplies including supplies on which tax is to be paid on reverse charge: All purchases or inward supplies made by a business needs to 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)

In case of any Amendments:

Any change in the details of inward supplies for earlier tax periods can be made here.
The details of an invoice that needs to be corrected like invoice amount, amount of tax, etc. should be mentioned in this table.
Also, a Debit Note or a Credit Note issued by the taxpayer has to be entered here. It will include amendment information mentioned in earlier tax periods and also original amendments of debit or credit note received rate- wise.

Tax on outward supplies made:

All sales made by composition dealers need to be entered in this table.
The total value of all the bills of supply raised during the quarter has to be entered in the turnover field.
The GST amount has to be segregated into CGST and SGST/UTGST. Under this section, one will need to provide the details of outward supplies which includes advance and net of goods returned during the current tax period.
Amendments in earlier furnished Outwards Supply details: Any change to be made to details of sales provided in previous returns is required to be stated here along with original details. Under this section, one will be able to rectify the incorrect details provided in previous returns.
Consolidated Statement of Advances paid/Adjusted on Account of Receipt of Supply: All advances paid for reverse charge supplies have to be specified here.
Also, all advances paid on which tax was paid in the earlier period but invoice is received in the current period should be entered.
This amount will be reduced from the total tax liability. All amendments to be made to advances mentioned in the previous period’s return should also be entered.

TDS Credit received:

Any TDS deducted by the supplier while making payment to the composition dealer has to be entered in this table. GSTIN of the deductor, Gross Invoice value and the TDS amount should be mentioned here.
Tax payable and paid: Total tax liability and the tax paid have to be specified in this table. IGST, CGST, SGST/UTGST and Tax have to be separately mentioned here.

Interest & Late Fee:
Interest, Late Fee payable and paid Interest and late fees payable for late filing or late payment of GST have to be mentioned here, including details of payment actually made.
Refund claimed: Any refund of excess taxes paid can be claimed here.

The refund from the Electronic cash ledger has to be further segregated into tax, interest, penalty, fees, and others.
If in case the tax liability of the composition dealer is below the TDS deducted, one can get a refund of the balance amount.
The amount which is available for a refund will be auto-filled under this section.
Debit entries in cash ledger for tax: All GST payments made in cash reflect here.
The payments have to be further segregated into tax paid through cash, interest paid and late fees paid.
This is to be populated after payment of tax and submission of return
Once all these details are filled in the sign off with a declaration that all information has been supplied and are correct. In addition, the GST Portal is also available with a GSTR-4 offline tool based on excel worksheets, for ease of GSTR-4 filing.

Find Your GSTR-4 Form here:GSTR-4