GSTR-4, as defined by the GST rules, is a yearly return that must be filed electronically on the GST Common Portal by taxpayers who choose the Composition Scheme.
A composition trader must file a GST Return known as GSTR-4. Unlike a regular taxpayer, who must file three monthly returns, a dealer who chooses the composition scheme must file only one return, GSTR 4, once a year by the 30th of April following the fiscal year.
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What is Form GSTR 4?
GSTR-4 A return is a statement of a composite taxpayer’s inner and outward supplies that was previously filed quarterly but is now replaced by a quarterly statement in Form CMP-08 that is filed annually.
During the Financial Year 2019-2020, CMP-08 was implemented to replace the previous quarterly GSTR return filed by composition dealers. Previously, businesses were obliged to file tax returns on a quarterly basis using GSTR, a seven-page form. The CMP-08, on the other hand, is a single-page statement.
Form GSTR (Annual Return) is a yearly return that must be completed once for each fiscal year by taxpayers who have elected for the composition scheme for the fiscal year and were in the composition scheme for any period during the fiscal year, beginning April 1, 2019, and ending March 31, 2020.
Who is required to file Form GSTR 4?
All composition taxpayers are required to file Form GSTR-4. This includes the following:
- Taxpayers who chose the composition scheme at Goods and service tax migration or first registration and have never changed their minds;
- Taxpayers who enrolled in the composition scheme before the start of any fiscal year since the implementation of the GST regime;
- Payers who initially opted in for composition but later opted out at any point during the year.
Information to be filled in GSTR-4
It is necessary to provide the following information:
- Supplies from a registered supplier are brought in.
- Incoming supplies from an unlicensed vendor
- Imported Services Specifications
- Inward and outbound supplies are taxed at different rates.
- TDS/TCS credit received details
Documents Needed For CMP-08 And GSTR-4 Filing
– Information on outbound supply, including exempt items;
– Data on inbound supplies that are subject to a reverse charge, including import if services are provided;
– Information on the amount of tax due and any interest that has been paid, if any.
How to revise GSTR-4?
It cannot be amended after it has been submitted to the GSTN Portal. Once the form is submitted, there is no way to change the information entered.
What is the late fee for the non-filing of GSTR-4?
If the GSTR is not filed by the due date, a late fee of Rs. 200 is charged every day. The maximum amount of late fees that can be assessed is Rs. 10,000. However, for the fiscal year 2020-21, the government has made an exception. When the entire amount of tax payable in the return is zero, the maximum late fee is Rs. 500; otherwise, it is Rs. 2000.
