How to File GSTR 4 on GST Portal?

The GSTR-4 Form is an official document for composition dealers to file returns. You need to file this form on the unified GST (Goods and Services Tax) portal by filling in the necessary details within the due date to avoid imposition of penalties, interest and late fees.

Learn how to file GSTR-4 on the GST portal for accurate filing and compliance with GST regulations.

What is GSTR 4?

Under the composition scheme under the GST regulations, a dealer has to file GSTR-4 returns annually. Composition taxpayers and dealers have to furnish one return per quarter in Form CMP-08 and the other once a year in Form GSTR-4. On the flip side, regular taxpayers have to furnish 2 monthly returns and one annual return with exemptions if applicable.

Due Date to File GSTR-4

The due date for filing the GSTR-4 annual return is 30th April of the next financial year. For instance, you need to file GSTR-4 returns for financial 2024-25 by 30th April 2025. Till the financial year 2018-19, the last date for filing GSTR-4 returns was the 18th of the month after the relevant quarter ended on a quarterly basis (using quarterly return form).

In the 53rd GST Council meeting, the deadline has been recommended to be revised from 30th April to 30th June from financial year 2024-25 onwards. CGST notification 12/204 released on 10th July 2024 notified the amendment date mentioning the process to complete the annual return form.

Preconditions for Filing GSTR-4 

Here are the filing requirements for GSTR-4:

● A registered taxpayer and composition vendor under the GST system

● Your business’s aggregate annual turnover or taxable turnover limit should not exceed ₹75 lakh per annum.

● You can engage in intrastate trade solely.

●  Ensure you keep a record of all purchases and imports that you make during the quarter.

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Sections to File in GSTR 4

To file GSTR-4, you need to fill in the following sections on the form on the unified portal considering the step-by-step guide:

1. GSTIN:

15-digit Goods and Services Identification Number (GSTIN) linked to the taxpayer's PAN number needs to be filled in.

2. Taxpayer’s Name:

You need to fill in the legal and trade name of the registered taxpayer or the business’s authorised signatory.

3. Taxpayer’s Turnover: You need to mention the total value of sales and purchases less taxes. This involves the total turnover of the business in the previous financial year.
4. Inward Supplies Including Reverse Charge Supplies

This section includes the supplier's GSTIN, invoice date and invoice number, invoice amount, applicable GST rates, taxable value, place of supply and the tax amount paid. Here are the details you need to fill in to complete this section:

●  Invoice Details: Purchases from registered suppliers excluding purchases under the Reverse Charge Mechanism need to be filled in this section. It will be auto-populated from the supplier's GSTR-5 and GSTR-1.

●  Purchases Under Reverse Charge Basis: Fill in the purchases made from registered vendors under the Reverse Charge Mechanism attracting tax. This data is auto-populated from the supplier's GSTR-1.

●  Purchases from Unregistered Suppliers: As this data is unavailable in the GSTN, you need to manually fill in this data.

● Import of Services: Provide details pertaining to imported services from overseas vendors attracting IGST (Integrated Goods and Services Tax) for services received.

5. Amendments to Details of Inward Supply Furnished in Returns for Earlier Tax Periods in Table 4:

Here are the details that you need to fill in this section:

●  Corrections to Content of Table 4: Fill in the updated details of Table 4 from GSTR-4 returns filed in the previous financial year. Notably, you need to report the place of supply if it is different from your registered location.

●  Original Debit and Credit Notes: Fill in the details of debit and credit notes issued by vendors and suppliers followed by invoice details.

●       Updates to Debit Notes and Credit Notes: Fill in the updated details of debit and credit notes (if any) for the previous tax period.

6. Tax on Outward Supplies:

You need to enter the details pertaining to outward supplies details or sales mentioning details of advances received and net goods returned during the quarter. Ensure the details incorporate the applicable GST rates at 0%, 5%, 12%, 18% or 28%. 

Mention the turnover for all the brackets and the tax payable at the composition rate. Notably, under the composition rate system, 1% applies to the trader's turnover, 2% applies to the manufacturers' turnover and 5% applies to the restaurant's turnover.

7. Amendments to Outward Supply Details Furnished in Earlier Tax Period Returns in Table 6:

You can modify the information under Table 6 of the earlier GST returns (GSTR-4 returns) under Table 7. Mention the information of the original document such as the quarter, turnover, GST rates and tax paid at a compounding rate followed by the modifications.

The provided details enable you to calculate the change in turnover and tax liability over a quarter. This facilitates adjustment in excess tax paid during a specific quarter for accurate calculations and filing.

8. Consolidated Statement of Advances Paid and Adjusted on Receipt of Supply:

Part (I) of this section entails intrastate and interstate supplies and purchase details for which the government levies tax under the reverse charge basis and advances paid for the current tax period. It additionally includes purchase details for transactions where an advance has been paid for the previous tax period.

Notably, it includes transactions for which full invoice is received for the quarter for the service providers in concern.

Part (II) entails updated and corrected data to Part (I) of Table 8 of the earlier GSTR-4 returns.

9. TDS Credit Received:

This section auto-populates the information pertaining to tax deducted at source by customers. It includes the customer's GSTIN, gross value mentioned on the invoice and the tax amount deducted.

10. Tax Payable and Paid:

Mention the tax paid for the quarter and the tax payable under IGST, CGST, SGST/UTGST (Integrated, Central, State, Union Territory Goods and Services Tax) and Cess. Tables 4, 6, 8 and 9 will calculate the total tax payable using the data you mention.

11. Interest, Late Fee Payable and Paid:

You need to fill in this section if penalties, interest and late fees apply for late payment, incorrect data entry and late return filing. This section includes applicable penalties, interest and late fees paid and payable.

12. Refund Claimed from Electronic Cash Ledger:

This section presents the refund details if the tax amount projected is greater than the tax you owe. In such a circumstance, ensure to check this section for the necessary details.

13. Debit Entries in Cash Ledger for Tax or Interest Payment:

Once you pay taxes and submit GSTR-4, this section will be auto-populated. The authorised signatory of the company needs to sign the truth declaration at the end of the document using the Aadhaar-based verification of the Digital Signature Certificate (DSC).

Ensure you click on the necessary declaration checkbox in each step and receive the confirmation message via SMS after completion.

Conclusion

To answer how to file GSTR-4 on the GST portal, it is essential to mention that you need to fill in all the details accurately. However, the section penalty, interest and late fees followed by the refund section need to be filled in only if applicable.

While the refund section helps you adjust taxes paid and payable, the other section results in additional payment. You can seamlessly avoid paying late fees, interest and penalties by filing GSTR-4 returns within the deadline. Ensure you adhere to the deadline to comply with the GST system and Indian tax laws.

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