Quarterly Returns Under Composition Scheme (GSTR-4)

Ensure seamless filing of your quarterly GSTR-4 return under the Composition scheme. This mandatory return is required for all dealers registered under the Composition scheme.

Adyant India Legal Services include:

Filing of GST CMP-08

Filing of GSTR-4

Reconciliation of transactions

Facilitation of Output tax payment

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GSTR-4 is a quarterly GST return filed by taxpayers registered under the Composition Scheme. This return is designed to simplify the tax compliance process for small businesses with a turnover below a specified threshold. In this guide, we will provide you with a comprehensive understanding of GSTR-4, including its purpose, due dates, and the process for filing the return.

List of Documents Required

How Does It Works?

Purpose of GSTR-4:

GSTR-4 is a summary return that allows composition vendors to report their quarterly sales and pay tax at a fixed rate. It provides a consolidated view of the supplies made during the quarter and the tax liability based on the applicable composition rate. Here are some key details included in GSTR-4:

Total value of supplies made during the quarter, including intra-state and inter-state supplies.

Tax paid at the composition rate (not exceeding 1% of the aggregate turnover) for the quarter. Invoice details for inward supplies if they are either imports or purchased from normal taxpayers.

Due Dates for GSTR-4 Filing

As a composition vendor, you are required to file GSTR-4 on a quarterly basis. The due date for GSTR-4 is the 18th of the month following the end of the quarter. Here is the quarterly schedule for GSTR-4 filing:

Quarter 1 (April to June): Due on July 18th

Quarter 2 (July to September): Due on October 18th

Quarter 3 (October to December): Due on January 18th

Quarter 4 (January to March): Due on April 18th

Filing Process for GSTR-4:

Filing GSTR-4 involves a straightforward process. Here are the steps to file GSTR-4:

Access the GST portal (www.gst.gov.in) and log in using your credentials.
Navigate to the Returns Dashboard and select the GSTR-4 form.
Fill in the required details, including the total value of supplies made during the quarter and the applicable composition rate.
Ensure the accuracy of the information provided and validate the return.
Submit the return on the portal.
Pay the tax liability, if any, through the integrated payment system.
After successful submission, download the acknowledgment receipt for your records.

Important Points to Note:

GSTR-4 is a self-declared return, and no invoice-level information is required to be provided. Only a summary of supplies made and tax paid is necessary.

Input tax credit is not available to composition vendors. Therefore, you should not claim any input tax credit in GSTR-4.

It is essential to pay theatax liability within the due date to avoid any penalties or interest charges.

Benefits of GSTR-4 Filing

Simplified Compliance: GSTR-4 simplifies the tax compliance process for composition vendors by offering a quarterly filing option with a consolidated view of sales and tax liability.
Lower Tax Rates: Composition vendors enjoy lower tax rates compared to regular taxpayers, reducing the tax burden on small businesses.
Reduced Administrative Workload: GSTR-4 eliminates the need for maintaining detailed invoices and input tax credit records, making it easier for composition vendors to manage their tax obligations.
Focus on Business Growth: By streamlining the tax compliance process, GSTR-4 allows composition vendors to dedicate more time and resources to focus on business growth and development.

Ensure Timely and Accurate GSTR-4 Filing:

Filing GSTR-4 accurately and within the due dates is crucial to maintain compliance with the GST regulations. It is recommended to keep track of your sales and tax liability throughout the quarter to ensure seamless filing. If you have any questions or require assistance, consider consulting a tax professional or utilizing online GST filing services.

By understanding the purpose, due dates, and filing process of GSTR-4, you can fulfill your tax obligations as a composition vendor efficiently and effectively. Stay updated with the latest guidelines and notifications from the GST authorities to ensure compliance with any changes related to GSTR-4.

Tracking GSTR-4 Status:

After filing your GSTR-4 return, you may want to track its status to ensure it has been successfully processed. Here is how you can track the status of your filed GSTR-4:

Log in to the GST portal (www.gst.gov.in) using your credentials.
Go to the Returns Dashboard and select the “Track Return Status” option.
Enter the relevant details, such as the financial year and quarter for which you filed GSTR-4.
Click on the search button to view the status of your return.
The portal will display the status of your GSTR-4 return, whether it is filed, submitted, processed, or any other relevant status.

Conclusion:

Filing GSTR-4 as a composition vendor allows you to simplify your tax compliance process by providing a consolidated view of your sales and tax liability. By understanding the purpose, due dates, filing process, and tracking methods for GSTR-4, you can ensure timely and accurate filing. It is recommended to stay updated with the latest notifications and guidelines from the GST authorities to comply with any changes related to GSTR-4. For personalized guidance, consult a tax professional or utilize reliable online GST filing services.

FAQ's

Who is eligible to file GSTR-4?

Small businesses and taxpayers registered under the Composition Scheme with a turnover below the specified threshold are eligible to file GSTR-4.

Can I make amendments to my filed GSTR-4 return?

Currently, there is no provision for amending GSTR-4 once it has been filed. Therefore, it is essential to ensure the accuracy of the information before submitting the return.

Zero-rated supply to SEZ without payment of IGST.
Export of goods to a country outside India without payment of IGST.
Provision of services to a client in a country outside India without payment of IGST.

Can I claim input tax credit (ITC) in GSTR-4?

No, composition vendors are not allowed to claim input tax credit on purchases in GSTR-4. The composition scheme offers a fixed tax rate, eliminating the availability of ITC.

Access the GST portal and log in using your valid credentials.

Navigate to Services > User Services > Furnish Letter of Undertaking (LUT) command to file the LUT.

: What are the consequences of not filing GSTR-4 on time?

Failure to file GSTR-4 within the due date may attract penalties and late fees. It is important to meet the filing deadlines to avoid any compliance issues.

Do I need to maintain detailed records of inward supplies as a composition vendor?

While GSTR-4 does not require invoice-level details of inward supplies, it is advisable to maintain basic records for your business’s internal reference and future requirements.

Can I file GSTR-4 on a monthly basis instead of a quarterly basis?

No, GSTR-4 is a quarterly return, and composition vendors are required to file it on a quarterly basis as per the prescribed due dates.