Introduction: What is GSTR-4?
GSTR-4 is the annual GST return mandatory for taxpayers under the Composition Scheme (Section 10 of CGST Act). While composition taxpayers pay taxes quarterly using CMP-08, GSTR-4 consolidates the year’s turnover, tax details, and inward supplies into a single return.
Filing GSTR-4 accurately is critical for compliance, avoiding penalties, and ensuring GST records remain clean for audits and future eligibility for loans or tenders.
Who Must File GSTR-4?
Filing GSTR-4 is mandatory for:
✅ Taxpayers who opted for the composition scheme during any part of the financial year.
✅ Those who switched out of the scheme mid-year or had their registration cancelled but were under composition during the year.
✅ Taxpayers with zero turnover (Nil return required).
Even if your business had no transactions, GSTR-4 Nil filing is mandatory to avoid late fees and notices.
When is GSTR-4 Due?
Due Date:
Initially April 30, now extended to June 30 each year for FY 2024-25 onward.
Late Fees:
- ₹50/day (₹25 CGST + ₹25 SGST) capped at ₹2,000 for non-nil returns.
- Capped at ₹500 for nil returns.
Filing late impacts your compliance rating and may block e-way bill generation.
What Does GSTR-4 Include?
| Table | Contents |
|---|---|
| Basic Info | GSTIN, name, PAN-level turnover from previous FY |
| Table 4 | Inward supplies (auto-populated from GSTR-4A and CMP-08, including RCM and imports) |
| Table 5 | CMP-08 quarterly tax payment summary |
| Table 6 | Outward supplies including RCM adjustments (entered manually) |
| Table 7 | TDS/TCS credits (auto-filled) |
| Table 8 | Tax liability and payment calculations |
| Table 9 | Interest and late fees |
These sections consolidate your entire financial year’s GST activity, ensuring your composition tax compliance is fully declared.
Prerequisites Before Filing GSTR-4
✅ All CMP-08 returns for the year must be filed before filing GSTR-4.
✅ Cross-check GSTR-4A (auto-populated purchase summary) for inward supplies from registered and unregistered dealers, including RCM liabilities.
✅ Maintain accurate purchase records and tax payment challans for each quarter.
Step-by-Step: How to File GSTR-4 on GST Portal
1️⃣ Log in to gst.gov.in → Services → Returns → Annual Return (GSTR-4).
2️⃣ Select the financial year and click “Prepare Online.”
3️⃣ Verify auto-populated tables (4A-D, 5) for inward supplies and CMP-08 data.
4️⃣ Manually enter Table 6 with outward supply turnover details.
5️⃣ Review tax calculations, interest, and late fee details auto-calculated in Table 8 and Table 9.
6️⃣ Preview your return for final checks.
7️⃣ File using DSC or EVC (OTP-based).
8️⃣ Receive ARN (Acknowledgement Reference Number) for your records.
⚠️ Note: GSTR-4 cannot be revised once filed; ensure data accuracy before submission.
Recent Updates for FY 2024-25 Onwards
✅ Extended Due Date: June 30 each year (previously April 30).
✅ 3-Year Filing Limit: From July 1, 2025, GSTR-4 for periods older than three years cannot be filed without commissioner approval.
✅ CMP-08 and inward supply reconciliation using GSTR-4A remains mandatory for accurate filing.
Summary Table: GSTR-4 at a Glance
| Feature | Detail |
|---|---|
| Applicability | All composition taxpayers (Section 10 CGST Act) |
| Filing Frequency | Annual |
| Due Date | June 30 |
| Late Fees | ₹50/day (max ₹2,000); Nil: ₹500 |
| Pre-requisite | CMP-08 filed for all quarters |
| Editable? | No post-filing |
| 3-Year Filing Bar | Yes, effective July 2025 |
Best Practices for Smooth GSTR-4 Compliance
✅ File CMP-08 on time each quarter to avoid blocking GSTR-4 filing.
✅ Match purchase records with GSTR-4A for accurate inward supply data.
✅ Keep detailed RCM payment records for inward unregistered purchases.
✅ File on or before June 30 to avoid late fees and system restrictions.
✅ Review your tax liability and interest dues before final submission.
✅ Maintain a compliance calendar to track GST deadlines systematically.
Why GSTR-4 Filing Matters
✅ It closes your annual GST compliance loop under the composition scheme.
✅ Helps avoid late fees, notices, and compliance rating issues.
✅ Prevents system restrictions like e-way bill blocking due to pending returns.
✅ Supports your eligibility for business loans and tenders with a clean GST record.
Conclusion: Stay Compliant with Timely GSTR-4 Filing
Filing GSTR-4 accurately and on time is critical for businesses under the GST Composition Scheme. It summarizes your annual tax activity, ensures compliance, and protects you from penalties under India’s GST laws.
With June 30 as the new deadline and a three-year filing limit effective July 2025, it is vital to maintain clean quarterly filings (CMP-08), accurate purchase records, and inward supply tracking throughout the year to ensure a seamless GSTR-4 filing experience.
