A registered dealer under the Composition Scheme with the following details has to file the GSTR-4 return:
- Inward supplies i.e. purchases
- Aggregate turnover i.e. sales
- Payment of Tax on it.
Moreover, every business registered as a composite dealer shall file GSTR 4 by the 18th of the month from the end of the relevant quarter. Even If there are no business transactions, you must file a NIL GST Return.
There are four steps to file GSTR-4:
- Prepare GSTR 4
- Payment of Tax
- File GSTR 4
You can prepare GSTR 4 in the following two ways:
- Prepare GSTR 4 Online on GST Portal
- Prepare GSTR 4 Offline through Offline Tool
Follow these steps:
- Prepare your GSTR-4
Log in to GST Portal
- Navigate to Services
Click on Returns > Returns Dashboard
- Select the Financial Year and Period of filing
Click on ‘PREPARE ONLINE’ under Quarterly Return GSTR 4
- A list of questions to show the relevant sections of the GST Return is displayed.
Fill in the answers with either ‘Yes’ or ‘No’ and click on ‘NEXT’
- Only the sections for which ‘YES’ was selected will be shown.
Thus, enter details of the relevant tax period in each of the sections displayed
- Payment of your Tax
Hence, click on PREVIEW to view and download PDF of the summary of the details filed.
- Click on PROCEED TO FILE for computation of tax, interest and late fee
Therefore, click on ‘Table 10 & 11’ to pay the liability of tax, interest or late fee
- File the return using either of the following options:
1. File GSTR 4 with DSC – Use Digital Signature of the Authorised Signatory. It is mandatory in case of a Company and an LLP
2. File GSTR 4 with EVC- Use OTP sent on registered email and mobile number of the Authorised Signatory.
- A success message is displayed with the ARN (Acknowledgment Reference Number)
Finally, a confirmation message is sent to the registered email and mobile number and the status of the return on the dashboard is changed to FILED
Businesses opting for composition scheme under GST need not file details of purchases made from their vendors at the time of filing quarterly return GSTR-4.
Taxpayers registered under Composition Scheme are required to file GST return in Form GSTR-4. Under GST, a normally registered dealer files two returns every month including GSTR-1 and GSTR-3B. Whereas, a composition dealer is required to file one return on a quarterly basis in Form GSTR-4.
Composition Scheme is an easy and hassle free scheme under GST. It allows the small taxpayers to do away with complex GST compliance in terms of filing returns and tax payment. Composition Dealers pay GST at a fixed rate of turnover and file return on a quarterly basis.