Everything You Need to Know About GSTR-4 Return Filing
Stay informed about GSTR-4 filing requirements, deadlines, and penalties for taxpayers under the Composition Scheme.
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Created: 10th July, 2025 4:47 PM, last update:10th July, 2025 4:47 PM
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Introduction to GSTR-4 Filing
GSTR-4 is an annual return specifically designed for taxpayers enrolled in the Composition Scheme. This scheme allows small businesses to pay GST at a fixed rate based on their turnover, simplifying compliance. Unlike standard taxpayers who submit more frequent returns, composition dealers only need to file GSTR-4 once a year, along with quarterly returns using CMP-08.
Latest Developments in GSTR-4 Regulations
Recent updates to the GSTR-4 filing process are critical for compliance:
- July 2025 Update: Taxpayers will no longer be able to file GSTR-4 beyond three years from the due date of the return. This change emphasizes the importance of timely submission.
- Extended Deadline: As of the 53rd GST Council meeting in July 2024, the deadline for filing GSTR-4 has been extended from April 30 to June 30 of the following financial year, beginning with FY 2024-25. This extension aims to give taxpayers ample time for accurate reporting.
What Constitutes GSTR-4?
GSTR-4 is an annual return that composition dealers must submit, detailing their tax liability for the previous financial year. Unlike regular taxpayers who need to file multiple returns, composition dealers have a simplified process, filing quarterly returns via CMP-08 and the annual GSTR-4 by June 30 of the succeeding year.
GSTR-4 Filing Deadline
The GSTR-4 filing deadline is set for June 30 following the relevant financial year. For example, the GSTR-4 for the financial year 2024-25 must be filed by June 30, 2025. The new regulation, effective from the July 2025 tax period, prohibits filing GSTR-4 beyond three years from the due date, making adherence to deadlines even more crucial.
Who Is Required to File GSTR-4?
Only those taxpayers who have opted for the Composition Scheme are required to file GSTR-4. Importantly, there is no specific turnover limit for filing this return. This includes service providers who fall under the special composition scheme as outlined in CGST (Rate) notification number 2/2019.
Revision of GSTR-4
Once GSTR-4 is filed, it cannot be revised on the GSTN portal. Therefore, it is vital for taxpayers to ensure the accuracy of their returns before submission to avoid any complications.
Understanding Late Fees and Penalties
Failure to file GSTR-4 by the due date incurs a late fee of ₹50 per day, capped at ₹2,000. For taxpayers with no tax liability, the maximum late fee is reduced to ₹500. This new structure replaces the previous late fee of ₹200 per day with a maximum limit of ₹5,000, reflecting the government's focus on encouraging timely compliance among taxpayers.
Conclusion
Filing GSTR-4 is an essential requirement for taxpayers under the Composition Scheme. Keeping track of due dates and understanding the implications of late filing can help businesses avoid unnecessary penalties and ensure compliance with GST regulations. Stay updated on the latest changes to ensure you meet all filing requirements efficiently.
Frequently Asked Questions
What is GSTR-4 and who needs to file it?
GSTR-4 is an annual return specifically for taxpayers enrolled in the Composition Scheme under GST. This scheme is designed for small businesses, allowing them to pay GST at a fixed rate based on their turnover, thus simplifying compliance. Only those who have opted for the Composition Scheme are required to file GSTR-4. Importantly, there's no specific turnover limit to file this return, which also includes service providers under the special composition scheme as mentioned in CGST (Rate) notification number 2/2019.
What are the key deadlines for filing GSTR-4?
The key deadline for filing GSTR-4 is June 30 following the completion of the financial year. For instance, if you are filing for the financial year 2024-25, your GSTR-4 must be submitted by June 30, 2025. It's crucial to be aware that starting from the July 2025 tax period, taxpayers will no longer be able to file GSTR-4 beyond three years from the due date, which emphasizes the importance of timely filing.
What happens if I miss the GSTR-4 filing deadline?
If you miss the GSTR-4 filing deadline, you will incur a late fee of ₹50 per day, capped at ₹2,000. However, if you have no tax liability, your maximum late fee is reduced to ₹500. This new structure was introduced to encourage timely compliance, replacing the previous fee structure. Therefore, it’s essential to keep track of these deadlines to avoid unnecessary penalties.
Can I revise my GSTR-4 after filing?
No, once you file GSTR-4, it cannot be revised on the GSTN portal. This makes it vital for taxpayers to ensure their returns are accurate before submission. Since there’s no option to correct mistakes after filing, double-checking your entries and calculations is crucial to avoid complications or potential penalties.
What are the recent changes to GSTR-4 filing regulations?
Recent updates to the GSTR-4 filing process include an extended deadline for submission. As per the 53rd GST Council meeting in July 2024, the deadline for filing GSTR-4 was extended from April 30 to June 30 of the following financial year, starting with FY 2024-25. Additionally, a new rule effective from July 2025 prohibits filing GSTR-4 beyond three years from the due date, highlighting the importance of timely submissions.
Is there a late fee for GSTR-4 filing, and how is it structured?
Yes, there is a late fee for GSTR-4 filing. If you file after the due date, you will incur a late fee of ₹50 per day, with a maximum cap of ₹2,000. For taxpayers with no tax liability, the fee is capped at ₹500. This structure is designed to promote timely compliance among taxpayers, replacing the previous higher late fee of ₹200 per day with a maximum of ₹5,000.
What documents do I need to prepare for GSTR-4 filing?
To prepare for GSTR-4 filing, you should gather all relevant financial documents that detail your sales and purchases for the financial year. This includes invoices, receipts, and any other records that reflect your tax liability under the Composition Scheme. Ensure you have your quarterly CMP-08 returns handy, as GSTR-4 is based on the data provided in these quarterly filings. Maintaining accurate records will simplify the filing process and help ensure compliance.
Can service providers file GSTR-4 under the Composition Scheme?
Yes, service providers can file GSTR-4 if they fall under the special composition scheme as outlined in CGST (Rate) notification number 2/2019. There is no specific turnover limit for service providers under this scheme, allowing them to benefit from the simplified tax compliance structure that GSTR-4 offers. This makes it easier for small service-oriented businesses to manage their GST obligations.
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