{"id":68726,"date":"2025-03-20T15:40:52","date_gmt":"2025-03-20T10:10:52","guid":{"rendered":"https:\/\/piceapp.com\/blogs\/?p=68726"},"modified":"2025-03-20T15:40:56","modified_gmt":"2025-03-20T10:10:56","slug":"gstr-4-annual-return","status":"publish","type":"post","link":"https:\/\/piceapp.com\/blogs\/gstr-4-annual-return\/","title":{"rendered":"A Complete Guide on GSTR 4 Annual Return"},"content":{"rendered":"\n<div class=\"wp-block-group has-background\" style=\"background-color:#f2f5f9\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<h3 class=\"wp-block-heading\"><strong>Key Takeaways <\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Annual Filing<\/strong> \u2013 Composition taxpayers must file GSTR-4 by April 30 (proposed extension to June 30 from FY 2024-25).<\/li>\n\n\n\n<li><strong>Quarterly Tax Payment<\/strong> \u2013 Taxes are paid via CMP-08 every quarter before filing GSTR-4.<\/li>\n\n\n\n<li><strong>Late Fee &amp; Penalty<\/strong> \u2013 \u20b950\/day (max \u20b92,000) for late filing; \u20b9500 max for nil tax liability.<\/li>\n\n\n\n<li><strong>Eligibility Limits<\/strong> \u2013 Inter-state traders, e-commerce sellers, and certain manufacturers are ineligible.<\/li>\n\n\n\n<li><strong>No ITC or Tax Collection<\/strong> \u2013 Composition dealers can\u2019t claim ITC or charge GST on sales.<\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n<p>Business entities registered under the GST composition scheme must file the GSTR-4 annual return,<strong> <\/strong>which is designed for small taxpayers. Unlike regular GST payers who submit multiple <a href=\"https:\/\/www.etmoney.com\/mutual-funds\/filter\/monthly-returns\" target=\"_blank\" rel=\"noopener\">monthly returns, <\/a>composition dealers file GSTR-4 on a quarterly basis, with the deadline set for the 30th of the last month in each quarter.<\/p>\n\n\n\n<p>Additionally, they must submit the GSTR-9A on an annual basis by December 31 of the following financial year.\u00a0 This guide explains everything you need to know about GSTR 4 Return, including filing return procedures, <a href=\"https:\/\/www.awork.com\/glossary\/deadline\" target=\"_blank\" rel=\"noopener\">deadlines<\/a>, and key requirements.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What Is GSTR 4 Annual Return?<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"900\" height=\"506\" src=\"https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2025\/03\/What-Is-GSTR-4-Annual-Return.png\" alt=\"What Is GSTR 4 Annual Return?\" class=\"wp-image-68795\" title=\"\" srcset=\"https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2025\/03\/What-Is-GSTR-4-Annual-Return.png 900w, https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2025\/03\/What-Is-GSTR-4-Annual-Return-300x169.png 300w, https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2025\/03\/What-Is-GSTR-4-Annual-Return-150x84.png 150w, https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2025\/03\/What-Is-GSTR-4-Annual-Return-768x432.png 768w\" sizes=\"auto, (max-width: 900px) 100vw, 900px\" \/><figcaption><\/figcaption><\/figure>\n\n\n\n<p>GSTR-4 is a tax return that composition dealers must file annually. Unlike regular taxpayers, who need to submit two monthly returns and an annual return (with some exceptions), composition scheme dealers are required to file a quarterly return using Form CMP-08 quarterly statements and an annual return through Form GSTR-4. This annual return must be submitted by April 30th of the following financial year.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>When Is the Due Date to File GSTR-4 Annual Return?<\/strong><\/h2>\n\n\n\n<p>Every business must file GSTR-4 before April 30th during the following financial year. The deadline to file the GSTR-4 for the financial year 2023-24 required submission by April 30, 2024. Between FY 2018-19 and its preceding period, all types of businesses needed to file their GSTR-4 on the 18th of each month following the <a href=\"https:\/\/community.smartsheet.com\/discussion\/82053\/calculating-the-quarter-complete\" target=\"_blank\" rel=\"noopener\">quarterly completion.<\/a><\/p>\n\n\n\n<p>The GST Council proposed during the 53rd GST meeting to push GSTR-4 filing from April 30th to June 30th of the following financial year, starting from 2024-25. The official announcement of CGST Notification 12\/2024 took place on July 10, 2024.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Who Must File GSTR-4 Annual Return?<\/strong><\/h2>\n\n\n\n<p>The filing of GSTR-4 applies to all composition scheme taxpayers without any <a href=\"https:\/\/www.caclubindia.com\/articles\/turnover-based-exemption-for-payment-of-1-gst-tax-liability-in-cash-43618.asp\" target=\"_blank\" rel=\"noopener\">turnover-based exceptions. <\/a>The filing of GSTR-4 does not require any restriction based on turnover amount. The special composition scheme for service providers under CGST (Rate) Notification No. 2\/2019 from March 7, 2020, appears within GSTR-4.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Eligibility Criteria for GST&#8217;s Composition Scheme<\/strong><\/h2>\n\n\n\n<p>To qualify for the GST composition scheme, a business must have an annual turnover below \u20b91.5 crore. However, businesses operating in Himachal Pradesh or the North-Eastern states must have an aggregate turnover under \u20b975 lakh. All businesses linked to the same PAN are considered when determining eligibility for this scheme.<\/p>\n\n\n\n<p>When opting for the composition scheme, the phrase &#8220;composition taxable person&#8221; must be displayed on all notice boards at the <a href=\"https:\/\/councilapproval.com.au\/planning-definitions\/what-is-business-premises-definition-meaning\/\" target=\"_blank\" rel=\"noopener\">business premises<\/a> and included on every bill of supply issued.<\/p>\n\n\n\n<p>Businesses engaged in the supply of goods within the same state are eligible for this scheme. However, suppliers can only offer services up to a limit of \u20b95 lakh. Composition scheme taxpayers cannot collect composition tax or claim an input tax credit.<\/p>\n\n\n\n<p>Certain businesses and individuals cannot opt for this GST composition plan. These are as follows:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Regular or non-resident taxable persons<\/li>\n\n\n\n<li>Service providers (except those in the restaurant sector)<\/li>\n\n\n\n<li>Businesses supplying goods through an e-commerce platform<\/li>\n\n\n\n<li>Suppliers of GST-exempt goods<\/li>\n\n\n\n<li>Businesses involved in inter-state trade<\/li>\n\n\n\n<li>Manufacturers of tobacco, pan masala or ice cream<\/li>\n\n\n\n<li>Suppliers of non-taxable goods<\/li>\n<\/ul>\n\n\n\n<p>For those ineligible for the scheme, tax liability includes the applicable tax amount, along with interest and a penalty equivalent to the <a href=\"https:\/\/www.deccanherald.com\/india\/karnataka\/bengaluru\/two-years-of-unpaid-property-tax-expect-100-penalty-plus-9-interest-3452298\" target=\"_blank\" rel=\"noopener\">unpaid tax.<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Sections in Form GSTR-4<\/strong><\/h2>\n\n\n\n<p>The updated annual return form GSTR-4 is divided into 9 sections, each serving a specific purpose:<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" title=\"New GSTR 4 Annual Return Detailed Video New Process 2024 How to File GSTR 4 FY 2023-24 |\" width=\"640\" height=\"360\" src=\"https:\/\/www.youtube.com\/embed\/je1yvDhNSOU?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Tables 1-3: Basic Details<\/strong><\/h3>\n\n\n\n<p>These sections auto-fill a taxpayer\u2019s fundamental details, including name, GSTIN, ARN, ARN date and turnover from the previous financial year.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Table 4: Inward Supplies<\/strong><\/h3>\n\n\n\n<p>This section records different types of inward supplies received from a registered person:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>4A:<\/strong> Supplies from a registered person without reverse charge<\/li>\n\n\n\n<li><strong>4B:<\/strong> Supplies from registered suppliers with reverse charge<\/li>\n\n\n\n<li><strong>4C:<\/strong> Purchases from unregistered suppliers<\/li>\n\n\n\n<li><strong>4D:<\/strong> Taxable import services under reverse charge<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Table 5: Summary of Tax Liability<\/strong><\/h3>\n\n\n\n<p>This table consolidates self-assessed tax details from Form GST CMP-08, covering payments on outward supplies details, import of services, inward supplies under reverse charge, interest and tax amounts.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Table 6: Outward &amp; Reverse Charge Supplies<\/strong><\/h3>\n\n\n\n<p>Composition dealers report outward supplies and inward supplies subject to reverse charge. Tax details such as GST rate applicable and amounts are also included, with IGST, CGST, SGST and Cess auto-filled.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Table 7: TDS or TCS Details<\/strong><\/h3>\n\n\n\n<p>Taxpayers enter the GSTIN of the deductor or <a href=\"https:\/\/irisgst.com\/how-to-register-as-an-e-commerce-operator\/\" target=\"_blank\" rel=\"noopener\">e-commerce operator<\/a>, along with invoice values and deducted TDS amounts. Any auto-deducted TDS\/TCS is also reflected.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Table 8: Tax, Interest &amp; Late Fees<\/strong><\/h3>\n\n\n\n<p>This section outlines tax, interest and penalties:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Tax payable:<\/strong> Auto-fills from Table 6<\/li>\n\n\n\n<li><strong>Tax paid:<\/strong> Derived from CMP-08<\/li>\n\n\n\n<li><strong>Balance tax payable:<\/strong> Difference between payable and paid tax<\/li>\n\n\n\n<li><strong>Interest and late fees:<\/strong> Lists amounts due and paid, with a late fee payable of \u20b9200 per day (up to \u20b95,000)<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Table 9: Refund Claims<\/strong><\/h3>\n\n\n\n<p>This section allows taxpayers to claim refunds for any excess<a href=\"https:\/\/incometaxindia.gov.in\/Pages\/tax-payment.aspx\" target=\"_blank\" rel=\"noopener\"> tax payments<\/a> under different categories:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Tax<\/li>\n\n\n\n<li>Interest<\/li>\n\n\n\n<li>Fee<\/li>\n\n\n\n<li>Penalty<\/li>\n\n\n\n<li>Other applicable charges<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Steps in Filing Form GSTR-4<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"900\" height=\"506\" src=\"https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2025\/03\/Steps-in-Filing-Form-GSTR-4.png\" alt=\"Steps in Filing Form GSTR-4\" class=\"wp-image-68797\" title=\"\" srcset=\"https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2025\/03\/Steps-in-Filing-Form-GSTR-4.png 900w, https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2025\/03\/Steps-in-Filing-Form-GSTR-4-300x169.png 300w, https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2025\/03\/Steps-in-Filing-Form-GSTR-4-150x84.png 150w, https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2025\/03\/Steps-in-Filing-Form-GSTR-4-768x432.png 768w\" sizes=\"auto, (max-width: 900px) 100vw, 900px\" \/><figcaption><\/figcaption><\/figure>\n\n\n\n<p>You can file GSTR-4 online through the official GST portal by following these steps:<\/p>\n\n\n\n<p><strong>Step 1: <\/strong>Sign in to the GST portal using your email ID and password.<\/p>\n\n\n\n<p><strong>Step 2:<\/strong> Navigate to \u2018Services,\u2019 select \u2018Returns,\u2019 and open the \u2018Returns Dashboard.\u2019<\/p>\n\n\n\n<p><strong>Step 3:&nbsp; <\/strong>Choose the relevant financial year and filing period.<\/p>\n\n\n\n<p><strong>Step 4: <\/strong>Tap on \u2018Prepare Online\u2019 under \u2018Quarterly Return GSTR-4.\u2019<\/p>\n\n\n\n<p><strong>Step 5: <\/strong>Answer a set of \u2018Yes\u2019 or \u2018No\u2019 questions that determine which sections of the return will be displayed. Click \u2018Next\u2019 to proceed.<\/p>\n\n\n\n<p><strong>Step 6: <\/strong>Only the sections for which you selected \u2018Yes\u2019 will appear. Enter the necessary details for the applicable tax period.<\/p>\n\n\n\n<p><strong>Step 7: <\/strong>Use the \u2018Preview\u2019 option to review your inputs and download a summary in<a href=\"https:\/\/www.adobe.com\/in\/acrobat\/about-adobe-pdf.html#:~:text=PDF%20is%20an%20abbreviation%20that,anyone%20who%20views%20the%20document.\" target=\"_blank\" rel=\"noopener\"> PDF format.<\/a><\/p>\n\n\n\n<p><strong>Step 8: <\/strong>Click \u2018Proceed to File\u2019 to calculate your tax, interest and any late fees.<\/p>\n\n\n\n<p><strong>Step 9: <\/strong>Go to \u2018Tables 10 and 11\u2019 to make the necessary tax and fee payments.<\/p>\n\n\n\n<p><strong>Step 10: <\/strong>Submit the return using either \u2018File GSTR-4 with DSC\u2019 (Digital Signature Certificate) or \u2018File GSTR-4 with EVC\u2019 (Electronic Verification Code).<\/p>\n\n\n\n<p>Once successfully filed, you will receive a confirmation message with an Acknowledgement Reference Number (ARN). A notification will also be sent to your registered email and mobile number and the<a href=\"https:\/\/www.irs.gov\/filing\/filing-status\" target=\"_blank\" rel=\"noopener\"> filing status<\/a> of GST registration\u00a0 will be updated to \u2018Filed.\u2019<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>GSTR 4 Interest on Late Payment<\/strong><\/h2>\n\n\n\n<p>As per the latest update, the late fee for delayed GSTR-4 return filing is \u20b950 per day, capped at \u20b92,000. If there is no tax liability, the maximum late fee is \u20b9500. Earlier, composition taxpayers had to pay \u20b9200 per day for late filing, with a maximum penalty of \u20b95,000.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Difference Between Form GSTR-4 and Form GSTR-4A<\/strong><\/h2>\n\n\n\n<p>The following table shows the difference between the GSTR-4 form and the GSTR-4A form:&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-table is-style-stripes\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Parameters<\/strong><\/td><td><strong>GSTR-4<\/strong><\/td><td><strong>GSTR-4A<\/strong><\/td><\/tr><tr><td><strong>Filing Frequency<\/strong><\/td><td>Filed once a year<\/td><td>Auto-generated, no submission required<\/td><\/tr><tr><td><strong>Purpose<\/strong><\/td><td>Summarizes outward supplies, tax payments, and ITC reversals<\/td><td>Displays inward supply details from registered suppliers<\/td><\/tr><tr><td><strong>Filing Requirement<\/strong><\/td><td>Mandatory for businesses under the composition scheme<\/td><td>Automatically generated for reference, no action needed<\/td><\/tr><tr><td><strong>Content<\/strong><\/td><td>Includes total turnover, tax paid, and invoice details<\/td><td>Lists purchases from GST-registered suppliers<\/td><\/tr><tr><td><strong>Corrections<\/strong><\/td><td>Modifications can be made in the following year&#8217;s return<\/td><td>Errors must be reported to suppliers for correction<\/td><\/tr><tr><td><strong>Due Date<\/strong><\/td><td>April 30 of the next financial year<\/td><td>Not applicable, as no filing is required<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Conclusion<\/strong><\/h2>\n\n\n\n<p>Filing the GSTR-4 annual return is essential for businesses under the composition scheme to stay GST-compliant. It simplifies tax reporting by replacing multiple monthly returns with a single annual filing. By understanding its due dates, eligibility and GST-related processes, you can <a href=\"https:\/\/www.wolterskluwer.com\/en\/expert-insights\/how-to-avoid-small-business-fines-and-penalties\" target=\"_blank\" rel=\"noopener\">avoid penalties<\/a> and ensure smooth business compliance.<\/p>\n\n\n\n<p class=\"has-background\" style=\"background-color:#f2f5f9\">\ud83d\udca1If you want to streamline your payment and make GST payments via credit or debit card, UPI consider using&nbsp;<a href=\"https:\/\/piceapp.com\/\">the PICE App<\/a>. Explore the PICE App today and take your business to new heights.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>FAQs<\/strong><\/h3>\n\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-1742445726699\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><strong><strong>Who needs to file GSTR-4?<\/strong><\/strong><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>All businesses registered under the GST composition scheme must file GSTR-4 annually. It applies to taxpayers with a turnover below \u20b91.5 crore (\u20b975 lakh for North-Eastern states) and those meeting the scheme&#8217;s eligibility criteria.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1742446364967\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><strong><strong>What is the due date for filing GSTR-4?<\/strong><\/strong><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>The current deadline is April 30 of the following financial year. However, the GST Council has proposed extending it to June 30 from FY 2024-25. Filing late attracts penalties and interest.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1742446370304\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \">How is GSTR-4 different from GSTR-4A?<\/h3>\n<div class=\"rank-math-answer \">\n\n<p>GSTR-4 is an annual return that composition dealers must file. GSTR-4A is an auto-generated statement of inward supplies, meant for reference only, with no filing requirement.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1742446375280\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><strong><strong>What happens if I fail to file GSTR-4 on time?<\/strong><\/strong><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Late filing attracts a penalty of \u20b950\/day (max \u20b92,000), or \u20b9500 for nil tax liability. Previously, the fee was \u20b9200\/day (max \u20b95,000). Delays may also lead to compliance issues with GST authorities.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1742446381545\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><strong><strong>Can composition taxpayers claim an input tax credit (ITC)?<\/strong><\/strong><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>No, composition scheme taxpayers cannot claim ITC. They also cannot collect GST from customers, making tax compliance easier but limiting tax benefits.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Business entities registered under the GST composition scheme must file the GSTR-4 annual return, which is designed for small taxpayers. Unlike regular GST payers who submit multiple monthly returns, composition dealers file GSTR-4 on a quarterly basis, with the deadline set for the 30th of the last month in each quarter. Additionally, they [&hellip;]<\/p>\n","protected":false},"author":7,"featured_media":68794,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-68726","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-gst"],"_links":{"self":[{"href":"https:\/\/piceapp.com\/blogs\/wp-json\/wp\/v2\/posts\/68726","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/piceapp.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/piceapp.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/piceapp.com\/blogs\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/piceapp.com\/blogs\/wp-json\/wp\/v2\/comments?post=68726"}],"version-history":[{"count":10,"href":"https:\/\/piceapp.com\/blogs\/wp-json\/wp\/v2\/posts\/68726\/revisions"}],"predecessor-version":[{"id":68851,"href":"https:\/\/piceapp.com\/blogs\/wp-json\/wp\/v2\/posts\/68726\/revisions\/68851"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/piceapp.com\/blogs\/wp-json\/wp\/v2\/media\/68794"}],"wp:attachment":[{"href":"https:\/\/piceapp.com\/blogs\/wp-json\/wp\/v2\/media?parent=68726"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/piceapp.com\/blogs\/wp-json\/wp\/v2\/categories?post=68726"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/piceapp.com\/blogs\/wp-json\/wp\/v2\/tags?post=68726"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}