GSTR-4 Annual Return for Composition Dealers – Due Date 30 April or 30 June?

GSTR-4 Annual Return for Composition Dealers

GSTR-4 Annual Return for Composition Dealers Under India’s Goods and Services Tax (GST) regime, small businesses can choose the Composition Scheme to reduce their compliance burden. This scheme is especially beneficial for businesses with a turnover up to ₹1.5 crore (or ₹75 lakh for certain special category states). GSTR-4 Annual Return for Composition Dealers Instead of filing multiple monthly returns, composition taxpayers enjoy a simpler return structure and lower tax rates.

GSTR-4 Annual Return for Composition Dealers One of the key compliance obligations under the Composition Scheme is the filing of the GSTR-4 Annual Return. However, many taxpayers are confused—should GSTR-4 be filed by 30th April or 30th June? In this blog, we’ll clarify the correct due date, the filing process, late fees, and other essential details.

✅ What is GSTR-4?

GSTR-4 is an annual return required to be filed by taxpayers registered under the GST Composition Scheme. GSTR-4 Annual Return for Composition Dealers While regular taxpayers file monthly or quarterly GSTR-1 and GSTR-3B returns, composition dealers follow a different compliance format:

• CMP-08: A quarterly statement used to declare and pay self-assessed tax
• GSTR-4: A yearly return that consolidates the entire year’s data

This simplified return format is designed to support small businesses by reducing paperwork and return frequency.

📅 Due Date Confusion: 30th April vs 30th June

Until the financial year 2023-24, the due date to file GSTR-4 was 30th April following the end of the financial year. GSTR-4 Annual Return for Composition Dealers However, with an aim to provide additional time for preparation and verification, the government has extended this due date.

🔔 As per Notification No. 12/2024 – Central Tax dated 10th July 2024:

In rule 62, after sub-rule (1), the following proviso shall be inserted:

“Provided that the return in FORM GSTR-4 for a financial year from FY 2024-25 onwards shall be required to be furnished by the registered person till the 30th day of June following the end of such financial year.”

📌 Summary of GSTR-4 Due Dates:

👤 Who Needs to File GSTR-4?

GSTR-4 must be filed by the following taxpayers:

1. Composition dealers registered under Section 10 of the CGST Act.
2. GSTR-4 Annual Return for Composition Dealers Service providers who have opted for the composition scheme for services, notified via Notification No. 2/2019–Central Tax (Rate).

🚫 Turnover Threshold:

There is no exemption based on turnover. If you are registered under the Composition Scheme, filing GSTR-4 is mandatory, regardless of your turnover amount.

📋 What Details Are Required in GSTR-4?

GSTR-4 summarizes the entire year’s transactions and tax liability. It includes:

1. Basic Details: GSTIN, legal name, trade name (auto-filled)
2. Inward Supplies:
   • Purchases from registered and unregistered dealers
   • Reverse charge transactions
3. Outward Supplies:
   • Total value of supplies made during the year
   • Tax details (auto-filled from CMP-08)
4. TDS/TCS Credit (if applicable)
5. Tax Paid Summary:
   • Tax, interest, and late fee paid during the year
6. Verification and declaration

All CMP-08 quarterly data auto-populates much of the return, making it easy to review and file.

🛑 Can GSTR-4 Be Revised?

No. GSTR-4 once filed cannot be revised.
Hence, it is important to carefully verify every section of the return before submission to avoid errors, mismatches, or tax notices. GSTR-4 Annual Return for Composition Dealers

💸 Late Filing Fees for GSTR-4

If the GSTR-4 return is filed after the due date, the taxpayer is liable to pay late fees as prescribed under Section 47 of the CGST Act.

Late Fee Structure:

This is a significant reduction from the earlier penalty of ₹200/day (₹100 CGST + ₹100 SGST), which was capped at ₹5,000.

🛠️ How to File GSTR-4 – Step-by-Step Guide

Here’s how you can file GSTR-4 on the GST portal:

Step 1: Log in

Go to www.gst.gov.in and log in using your credentials.

Step 2: Navigate to Return Filing

Go to Services > Returns > Annual Return.

Step 3: Select Financial Year

Choose the financial year for which you want to file GSTR-4.

Step 4: Click on ‘Prepare Online’

Click on the ‘Prepare Online’ button to start filling your return.

Step 5: Fill the Required Details

Provide all necessary information:

• Inward supplies
• Outward supplies
• Tax paid
• TDS/TCS credit (if applicable)

Step 6: Validate and Submit

Review all data carefully. Once validated, submit the return using:

• DSC (Digital Signature Certificate), or
• EVC (Electronic Verification Code) for authentication.

🔚 Conclusion

GSTR-4 Annual Return for Composition Dealers The extension of the GSTR-4 due date from 30th April to 30th June (starting FY 2024-25) is a welcome move for composition taxpayers. It provides more time to compile data, verify entries, and file the return without the last-minute rush.

Key Takeaways:

• GSTR-4 is mandatory for all composition dealers.
• From FY 2024-25 onwards, the due date is 30th June.
• Filing late attracts penalties, but capped limits provide relief.
• Data from CMP-08 filings help auto-populate most fields.

Timely and error-free filing of GSTR-4 ensures that your business stays compliant with GST laws and avoids unnecessary penalties. Make sure to file it on time and maintain all relevant records.

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