What is GSTR-4 under GST?

GSTR-4 is the GST return that is to be filed by taxpayers registered under the Composition Scheme. It is to be filed on a quarterly basis on GST Portal. It comprises of details of purchases, sales turnover and tax liability for the relevant quarter.

Further, before filing GSTR-4, the taxpayer must make the payment of tax at a specified rate on total outward supplies i.e. sales. The rate depends on the nature of the taxpayer.

What information is required to be reported under GSTR-4?

1. GSTR-4 comprises of the following details:
2. GSTIN i.e. GST Identification Number of the taxpayer
3. Legal Name and Trade Name of the business
4. Return period i.e. the quarter
5. Details of inward supplies i.e. purchases

  • Purchases from registered dealers (including purchases on which reverse charge is applicable)
  • Purchases from unregistered dealers (including purchases on which reverse charge is applicable)
  • Credit Note and Debit Note for purchases from registered and unregistered dealers
  • Import of Services
  • Amendment of purchases, import or notes

Tax liability on sales turnover at prescribed rate as per the table below:

Nature of BusinessTotal Tax RateCGST RateSGST Rate
Trader1%0.5%0.5%
Manufacturer2%1%1%
Restaurants not serving alcohol5%2.5%2.5%
Other Services6%3%3%

FAQs

What happens when the GSTR-4 is reset?

The Details furnished in GSTR-4 can be reset with RESET button that appears post submission of GSTR-4. Entries posted in Electronic Liability Register/Cash Ledger will also be deleted with reset. Taxpayer need to resubmit the application/ form with new data.

Can a person paying tax under the composition scheme issue a tax invoice under GST?

No. He can issue a bill of supply in lieu of tax invoice

Can the option to pay tax under composition levy be exercised at any time of the year?

No. The option is required to be given electronically in FORM GST CMP-02, prior to the commencement of the relevant financial year.

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