Everything You Should Know About GSTR-4 Filing
Discover the essentials of GSTR-4, including deadlines, penalties, and who is obligated to file this important GST return.
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Created: 11th July, 2025 1:45 AM, last update:11th July, 2025 1:45 AM
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What is GSTR-4?
GSTR-4 is an annual return specifically tailored for taxpayers enrolled in the Composition Scheme. Unlike standard taxpayers who must submit multiple returns throughout the year, composition dealers are required to file a single return annually. This return is due by the end of June following the relevant financial year, simplifying the process for small businesses.
Recent Updates to GSTR-4 Regulations
As of July 10, 2024, significant modifications were announced regarding the filing deadlines for GSTR-4. The due date has been extended from April 30 to June 30 of the subsequent financial year. This adjustment allows taxpayers additional time to prepare their returns and adhere to GST regulations. Furthermore, a recent advisory from GSTN, dated June 7, 2025, established that GSTR-4 cannot be filed beyond three years from its due date, underscoring the importance of timely compliance.
GSTR-4 Filing Deadlines
Taxpayers should be aware that the deadline for GSTR-4 is set for June 30 each year, following the conclusion of the financial year. For example, the GSTR-4 for the fiscal year 2024-25 must be submitted by June 30, 2025. This updated timeline aligns with the latest guidelines outlined in CGST Notification 12/2024, ensuring businesses can fulfill their obligations without undue pressure.
Who Must File GSTR-4?
Any taxpayer participating in the Composition Scheme is required to file GSTR-4, with no specified turnover limit for submission. This includes provisions for a special composition scheme designated for service providers, as detailed in CGST (Rate) Notification number 2/2019, which took effect starting FY 2019-20.
Revising GSTR-4: Key Considerations
An important point for taxpayers is that GSTR-4 returns cannot be revised once they have been filed on the GSTN Portal. This emphasizes the necessity for accuracy in reporting and highlights the importance of thorough review before submission.
Late Fees and Penalties for GSTR-4
Timeliness is critical when it comes to GSTR-4 filings. If a taxpayer fails to file their return by the due date, a late fee of Rs. 50 per day will be imposed, capped at Rs. 2,000. In instances where there is no tax liability, the maximum late fee is reduced to Rs. 500. This represents a significant change from previous regulations, where the penalty could reach Rs. 5,000 for late submissions. Understanding these fees can help taxpayers avoid unexpected costs and ensure compliance.
Conclusion
Filing GSTR-4 is a crucial responsibility for composition dealers within the GST framework. Staying informed about deadlines, filing requirements, and potential penalties is essential for maintaining compliance and avoiding unnecessary fees. By grasping these aspects, businesses can navigate the complexities of GST filings with confidence.
Frequently Asked Questions
What exactly is GSTR-4 and who needs to file it?
GSTR-4 is an annual return specifically designed for taxpayers under the Composition Scheme, which is aimed at small businesses. Unlike regular taxpayers who file multiple returns throughout the year, those in the Composition Scheme only need to submit one return annually. This simplifies compliance, allowing small business owners to focus on their operations rather than paperwork. If you're a composition dealer, it’s essential to file GSTR-4, regardless of your turnover, as there is no specified limit for submission.
What are the updated deadlines for filing GSTR-4?
As of July 10, 2024, the deadline for filing GSTR-4 has been extended to June 30 of the following financial year. For instance, if you need to file for the fiscal year 2024-25, your return must be submitted by June 30, 2025. This change was introduced to provide taxpayers with more time to prepare their returns and ensure compliance with GST regulations without undue pressure. It's crucial to keep this date in mind to avoid late fees.
What happens if I miss the GSTR-4 filing deadline?
If you fail to file your GSTR-4 by the deadline, you’ll incur a late fee of Rs. 50 per day, capped at Rs. 2,000. However, if there’s no tax liability, the maximum late fee is reduced to Rs. 500. This is a significant change from previous regulations, which could impose penalties up to Rs. 5,000 for late submissions. Thus, it’s essential to file on time to avoid these costs and maintain compliance with GST laws.
Can I revise my GSTR-4 after filing it?
No, once you’ve filed your GSTR-4 on the GSTN Portal, you cannot revise it. This rule underscores the importance of accuracy in your reporting. It’s crucial to review all details thoroughly before submitting your return to ensure that everything is correct. Double-checking your information can save you from potential issues down the line, as revisions are not permitted after the initial filing.
Are there any special provisions for service providers filing GSTR-4?
Yes, there are specific provisions for service providers under the Composition Scheme. As per CGST (Rate) Notification number 2/2019, a special composition scheme was introduced for service providers starting from the fiscal year 2019-20. This allows service providers to also participate in the Composition Scheme, making it easier for them to comply with GST regulations while benefiting from simplified filing processes.
What should I prepare before filing my GSTR-4?
Before filing your GSTR-4, make sure you have all required documents and data ready, including your sales and purchase records, tax liability calculations, and any relevant invoices. Reviewing your financial statements will help you ensure that the information you report is accurate. It’s also a good idea to check for any updates or changes in GST regulations that may affect your filing. Preparing in advance not only streamlines the process but also helps avoid potential penalties for inaccuracies or late submissions.
How can I ensure compliance with GSTR-4 filing requirements?
To ensure compliance with GSTR-4 filing requirements, start by staying informed about the latest GST regulations and deadlines. Keep meticulous records of your sales and purchases throughout the year, and regularly reconcile your accounts to ensure accuracy. Setting reminders for the filing deadline can help you avoid late fees. Finally, consider consulting with a tax professional or using reliable accounting software to assist in the filing process. By taking these proactive steps, you can navigate the complexities of GSTR-4 with confidence.
What are the consequences of not complying with GSTR-4 filing?
Not complying with GSTR-4 filing can lead to financial penalties and increased scrutiny from tax authorities. Late submissions incur a fee of Rs. 50 per day, which can add up quickly. Moreover, failing to file can also result in restrictions on future business activities, such as difficulties in obtaining loans or contracts. It's essential to adhere to filing deadlines not only to avoid these penalties but also to maintain a good standing with tax authorities and ensure the smooth operation of your business.
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