GSTR-4 Composition Annual Return: Turnover Limit & Due Date

Small businesses with an annual turnover of less than Rs. 1.5 Crore have an alternative option to file their GST Returns quarterly instead of monthly. This facility is called the Composition Scheme. GSTR-4 is an annual return filed by businesses that opted for the Composition Scheme. 

In this blog, we will discuss all the details related to GSTR-4, such as its applicability, meaning, return filing date, and due date. 

Understanding GSTR-4 Meaning

GSTR-4 is the GST Return to be filed by the businesses that opted for the Composition Scheme. In this GST Return, companies must furnish the total value of the sales, supplies made, tax paid, and purchases from registered taxpayers, along with invoice details during the corresponding tax period. 

When you procure supplies from registered vendors, the details from their GSTR-1 get populated in your GSTR-4A. This facility allows you to verify the details of your purchases. Also, you can add the details to your GSTR-4A if they are missing. 

GSTR-4 Applicability 

• Business should be registered under the Composition Scheme. 
• A business’ aggregate annual turnover should not be more than Rs. 1.5 Crore (for special category of states, aggregate annual turnover limit reduces to Rs 75 lakh) 
• Have to maintain a record of all the purchases from quarter to quarter. 
• Business trade should be limited to the state where it is registered.

GSTR-4 Annual Return Due Date

From FY 2024-25 onwards, the due date for the GSTR 4 annual return was extended from 30 April to 30 June of the following year. This decision to extend the due date for filing GSTR-4 was taken in the 53rd GST Council Meeting and later announced via CGST Notification 12/204 dated 10 July 2024.

GSTR-4 Late Fees

Following are the GSTR-4 late fees for two different categories of GST Returns: 

NIL Return: Levied Rs. 50 per day up to a maximum of Rs. 500

Regular Return: Levied Rs. 50 per day capped at Rs. 2000

GSTR-4 Return Filing Format 

In the following section, we will discuss the GSTR-4 return filing format and the details to be filled in each section. 

Table 1 to 3: Basic Company Details 

Year – Mention the year for which you are filing GSTR-4

GSTIN – Specify the GST registration number of your company

Legal name – Name of your company as per the GST registration (auto-populated)

Table 4: Aggregate turnover (in the preceding financial year) – The aggregate turnover of your company in the prior financial year will be auto-populated

ARN – This is the unique reference number of your return (auto-populated)

Date of ARN – Mention the date of ARN. 

Table 5: Inward supplies, including supplies on which tax is to be paid on reverse charge

4A: Supplies from a registered supplier (other than reverse charge)

Provide details of all supplies received from a registered supplier (interstate and intrastate) for which the reverse mechanism is not applicable. 

4B: Supplies from a registered supplier (attracting reverse charge)

Provide details of all supplies procured from a registered supplier (interstate and intrastate) on which the reverse charge mechanism applies.

4C: Unregistered supplier

Provide details of all the supplies received from an unregistered supplier, outside or within the same state. 

4D: Import of services

Provide all the information of all import services rendered on which tax is payable due to the reverse charge mechanism. 

Table 6: Summary of self-assessed liability as per Form GST CMP-08

Form CMP-08 is filed quarterly throughout the year for making tax payments. The information in this form gets auto-populated along with payment details of all the CMP-08 filed during the year, including outward supplies, inward supplies attracting reverse charge, tax paid and interest paid.  

Table 7: Tax rate-wise details of outward supplies/inward supplies attracting reverse charge during the year

Provide details of all outward and inward supplies attracting reverse charge tax, including total taxable value. Other information such as IGST, CGST, SGST, and Cess amount will be auto-populated. 

Table 8: TDS/TCS Credit received

If you receive any TDS/TCS credit from a supplier or e-commerce operator, it will be auto-populated. The taxpayer must mention other details, such as the deductor’s GSTIN, gross invoice value, and the amount of TDS deducted. 

Over To You 

After reading this blog on GSTR-4, we hope all your questions about the businesses under the Composition scheme annual return are answered. If you still have any queries, feel free to contact us. If you want to simplify your GST filing process, we recommend signing up with Munim GST filing software. With this software, you can file GST returns with or without OTP. 

Frequently Asked Questions on GSTR 4

Are purchase details mandatory in GSTR 4? 

Yes, providing purchase details is mandatory when filing GSTR-4 (the annual return for composition taxpayers). You need to provide purchase details for interstate and intrastate supplies. 

What is the difference between CMP 08 and GSTR 4?

Both are GST Returns to be filed by businesses that opt for the Composition Scheme; the following is the difference between them: 

CMP-08: To be filed quarterly 

GSTR-4: To be filed annually   

What is the ‘RET00009’ error on the GST Portal? 

The following are the possible reasons behind the RET00009 error on the GST portal. 

• The issue with internet connectivity 
• Data Discrepancy 
• GST Return submitted more than once 
• Technical difficulties in processing your GST Return 

What is the Difference between GSTR 4 and 4A?

Here is the difference between GSTR-4 and GSTR-4A: 

GSTR-4

• To be filed by composition taxpayers
• Consists of details of outward supplies, tax on supplies, inward supplies and tax payable 

GSTR-4A

• Need not take any action; it is a view-only form 
• Consists of data on purchases
• Generated from data submitted in GSTR-1 and GSTR-5 by the registered taxpayer

What is the GSTR 4 turnover limit? 

​The turnover limit for taxpayers of the GSTR4 (annual return) Composition scheme is 1.5 Cr annually. It is restricted to Rs. 75 lakh for a special category of states.