GST is a path breaking indirect tax reform which attempts to create a common national market. The Composition scheme is a very simple, hassle free compliance scheme for small businesses under GST. It is a voluntary and optional scheme. Taxpayers registered under Composition Scheme have to file an annual return GSTR 4 on GST Portal.
What is GSTR 4?
Every registered tax payer under Composition Scheme have to furnish an annual return i.e. Form GSTR 4. It comprises of details of turnover in the state or Union territory, inward supplies of goods and/or services, tax payable, tax paid and such other particulars.
Who Should file GSTR 4?
All registered taxpayers who have opted for composition scheme or were under composition scheme under GST, for any period during a financial year need to file an annual return.
Contents of GSTR 4
The broad contents of Annual Return contains:
- Basic & Other Details
- GSTIN i.e. GST Identification Number of the taxpayer
- Legal Name and Trade Name of the business
- TDS/TCS credit received
- Tax, interest, late fee payable and paid
- Refund claimed from Electronic Cash ledger
- Details regarding Inward and Outward Supplies
- Purchases from registered dealers (including purchases on which reverse charge is applicable)
- Purchases from unregistered dealers (including purchases on which reverse charge is applicable)
- Summary of self assessed liability as per GST CMP 08 (Net of advances credit and debit notes and any other adjustments due to amendment tables)
- Import of Services
GSTR 4 Due Date
The due date for filling the annual return is 30th of the month succeeding the financial year i.e. 30 April or as extended by government.
Further, the persons required to file an annual return are also required to furnish a statement in Form CMP-08 containing details of payment of self-assessed tax every quarter.
Annual Return can be filed only if, all applicable quarterly statements in Form CMP 08 of that financial year have been filed.
Who can file NIL GSTR 4?
If the following conditions are match:
- Not made any outward supply
- Not received any goods/services
- Have no other liability to report
- Have filed all Form CMP-08 as Nil
Nil Annual Return can be filed.
How to Revise GSTR 4?
The is no option to revise the annual return once filed.
Late Fees and Penalty
The fee for late filing of annual return is Rs. 50 per day up to a maximum of Rs. 2000. Where the tax liability is nil, the maximum late fee is Rs. 500.
No. He can issue a bill of supply in lieu of tax invoice
Yes, It is mandatory to file Form, in case you have opted for Composition Scheme.