What is the GSTR 4 format?
The GSTR 4 form is a document that helps taxpayers under the Composition Scheme to report their GST-related activities. This form is divided into 9 tables, each with a specific purpose, and helps the taxpayer accurately report their taxes. Here is a breakdown of each table in simple terms:
Tables 1-3: Basic information
The first 3 tables are designed to capture basic details about the taxpayer. These details are automatically filled in based on the GSTIN (Goods and Services Tax Identification Number) of the taxpayer. Here is what is included in these tables:
- GSTIN: This is the unique identification number assigned to every GST-registered business. It is essential for all GST-related processes
- Name: The name of the business or individual
- Aggregate turnover: This refers to the total turnover of the business in the previous financial year. This helps determine whether the business qualifies for the Composition Scheme
- Application Reference Number (ARN): This is a reference number generated when the taxpayer applies for GST registration or when they file their return. It is automatically filled in when the taxpayer logs into the portal
- ARN date: The date on which the ARN was issued
These fields are auto-populated, so the taxpayer does not need to manually enter them.
Table 4: Inward supplies
Table 4 is used to report the inward supplies, i.e., purchases made by the taxpayer. This table is further divided into four sections:
- 4A: This section records the supplies received from registered suppliers, where reverse charge does not apply. Reverse charge means that the recipient, not the supplier, is responsible for paying the tax. This section includes both interstate (between states) and intrastate (within the same state) supplies
- 4B: This section records supplies received from registered suppliers that are subject to reverse charge. In such cases, the taxpayer has to pay the GST instead of the supplier
- 4C: This section covers supplies received from unregistered suppliers. Again, this can be both interstate and intrastate supplies
- 4D: This part focuses on taxable import services that are subject to reverse charge. If the taxpayer imports services, they need to mention these here
Table 5: Summary of liability
Table 5 provides a summary of the taxpayer’s liability. This means it shows how much tax is due for the period, based on the information entered in the previous tables. The details in this table are auto-filled from Form GST CMP-08, which is used for self-assessment of the taxpayer’s liability. This section includes:
- Taxes on inward supplies attracting reverse charge
- Taxes on outward supplies (sales made by the taxpayer)
- Interest paid on late payments
- The total tax amount that the taxpayer needs to pay
Table 6: Outward supplies
Table 6 records the outward supplies, or sales made by the taxpayer, including any inward supplies that are subject to reverse charge. This table asks for the following details:
- Tax rate: The GST rate applicable on the sale or supply made
- IGST, CGST, SGST, and cess: These are the various types of taxes under GST:
- IGST (Integrated GST) is applicable on interstate supplies (sales made between different states)
- CGST (Central GST) and SGST (State GST) are applicable on intrastate supplies (sales within the same state)
- Cess is an additional tax on certain goods and services
These fields are used to calculate the total taxes the taxpayer needs to pay on their sales.
Table 7: TDS/TCS details
Table 7 is used to report the details of Tax Deducted at Source (TDS) and Tax Collected at Source (TCS). These taxes are deducted or collected by other parties, such as suppliers or e-commerce operators. The following details are required here:
- GSTIN of the deductor/operator: The GSTIN of the person who has deducted or collected the tax
- Gross invoice value: The total value of the invoice before taxes
- TDS amount: The amount of tax that was deducted from the invoice
This table helps the taxpayer report any TDS or TCS that has been collected or deducted on their behalf.
Table 8: Tax, interest, and late fee
Table 8 outlines the amounts payable or already paid for taxes, interest, and late fees. It includes the following:
- Payable tax amount: This is the total tax due for the period, which is auto-filled from Table 6 (Outward Supplies)
- Tax amount paid: This shows the tax amount already paid as per Form GST CMP-08
- Balance tax payable: If the tax paid is less than the payable amount, this will show the remaining tax that the taxpayer still needs to pay
- Interest payable and paid: If the taxpayer has paid taxes late, this section will show the interest on the delayed payment
- Late fee payable and paid: If the taxpayer has delayed the filing of the return, they will need to pay a late fee. This section will show the late fee payable and any late fees that have already been paid
Table 9: Refund claims
Table 9 is for taxpayers who want to claim refunds for excess taxes paid. This can happen if the taxpayer has paid more tax than required or has a balance after tax adjustments. The refund amount is broken down into different categories:
- Tax: Refund on excess tax paid
- Interest: Refund on excess interest paid
- Penalty: Refund on any penalties paid
- Fee: Refund on fees paid
- Others: Any other refund claims related to the GST payment
Taxpayers can use this table to claim refunds for any excess payments made during the period.
13 components of the GSTR 4 form
- The GSTIN of the person filing the return. This is auto-populated.
- Name of the taxpayer. This is also auto-populated once you sign in to the portal.
- Details of the total turnover of the previous financial year will need to be filled in by you. Thereon, this field will be automatically auto-populated with the closing balance for each succeeding form.
- Details of inward supplies, including those eligible for a reverse charge, are also part of GSTR components.
Inward supply details include the following:
- Inward supplies from unregistered persons.
- Inward supplies from registered suppliers (attracting reverse charge).
- Inward supplies from registered suppliers (other than reverse charge).
- Import of services (subject to reverse charge).
- Any revisions to inward supply details, including credit and debit notes, stated in returns for a previous tax period.
- Taxes on outward supplies made, including advance and goods returned, during the tax period you are filing returns for.
- Any revisions on outward supplies details mentioned in previous GSTR 4 returns, for earlier tax periods.
- Any advances that you have paid for reverse charge supplies are to be listed in this section. Also, any taxes paid on advances that you paid earlier but received the invoice for only now, should be mentioned here.
- Any received TDS credit. This table will require details such as the GSTIN of the deductor, TDS amount, and the gross invoice value.
- Total tax liability and tax payment made with segregation according to under heads of cess, CGST, SGST, IGST, and UTGST.
- Any payable or paid interest and late fees (including details of the same).
- For excess taxes paid by you in the past, refund claims can be made in this section. You can claim a refund under the sections of tax, interest, penalty, fees, and others.
- All payments made in cash, including tax, interest, and late fees, must be listed here.
How to file GSTR 4 online
Just like other GSTR forms such as GSTR 1 and GSTR 3B, you can file GSTR 4 returns online.
GSTR 4 online filing can be done on the official GST portal through these steps:
Log in to the GST portal with your email id and password.
Additional read: GST Return Filing Process Explained
- Click on ‘services’, go to ‘returns’ and select ‘returns dashboard’.
- Select the financial year and the period of filing.
- Click on ‘prepare online’ under ‘quarterly return GSTR 4’.
- Upon doing so, you will get a list of questions to show the relevant sections of the GSTR returns, which you need to answer in ‘yes’ or ‘no’. Then, click ‘next’.
- Note that only sections for which you chose ‘yes’ are displayed. Key in the details for the applicable tax period for each of the sections displayed.
- Next, click on ‘preview’ to view the submitted details and download a PDF of the summary of the details entered.
- Click on ‘Proceed to file’ for calculating the applicable tax, interest, and late fee.
- Click ‘table 10 and 11’ to pay the tax, interest, and late fee.
- You can file returns with either of these two options: ‘file GSTR 4 with digital signature certificate (DSC)’ or ‘file GSTR with electronic verification code (EVC)’.
- Once done, a success message is displayed with the acknowledgement reference number (ARN). Simultaneously, a confirmation message is sent to your registered mobile number and email, and your filing status changes to ‘filed’.
You can also file GSTR online using other software by importing data directly to the relevant columns.
Common mistakes while filing GSTR 4 online
Here are the key mistakes to avoid while filing GSTR-4 under the GST composition scheme. Avoiding these errors helps ensure accurate filing, prevents penalties, and reduces compliance issues.
- Not filing all four CMP-08 returns before filing GSTR-4: Taxpayers must ensure that all quarterly CMP-08 statements for the financial year are filed before attempting to submit GSTR-4.
- Entering incorrect previous year turnover: The turnover of the previous financial year must be reported correctly. If there was no turnover, it should be entered as “0” and not left blank.
- Missing details in Table 4C: Taxpayers often overlook reporting supplies received from unregistered suppliers, which must be correctly disclosed in Table 4C of the GSTR-4 return.
- Filing after the restriction window: GSTR-4 cannot be filed beyond the prescribed statutory time limits, including the applicable restriction period of up to three years from the due date.
- Confusing GSTR-4 with GSTR-9: GSTR-4 is an annual return for composition taxpayers, whereas GSTR-9 is the annual return for regular taxpayers. Mixing the two leads to incorrect compliance.
- Using outdated due dates: Taxpayers sometimes refer to the old due date of 30th April. The updated due date for FY 2024–25 onwards is 30th June of the following financial year.
- Attempting revision after filing: GSTR-4 cannot be revised once submitted. Any corrections must be made in the subsequent financial year’s return, making careful verification essential before final submission.
GSTR-4 late fees and penalty
It is important to file GSTR-4 within the prescribed due date to avoid penalties and ensure uninterrupted compliance under the GST composition scheme. Under the current GST framework, late fee is charged at Rs. 25 per day under CGST and Rs. 25 per day under SGST (total Rs. 50 per day), subject to a maximum cap of Rs. 2,000 for taxpayers having tax liability. For nil returns, the late fee is Rs. 10 per day under CGST and Rs. 10 per day under SGST (total Rs. 20 per day), subject to a maximum cap of Rs. 500. In addition, interest at 18% per annum is applicable on any delayed payment of tax liability, calculated from the due date until the date of actual payment.
Late fee comparison (old vs current structure)
| Particulars | Earlier position | Current position |
|---|
| Late fee (tax liability returns) | Rs. 200 per day, capped at Rs. 5,000 | Rs. 50 per day (CGST + SGST), capped at Rs. 2,000 |
| Late fee (nil returns) | Not uniformly structured | Rs. 20 per day (CGST + SGST), capped at Rs. 500 |
Taxpayers should also note that if GSTR-4 for a particular financial year is not filed, subsequent filings may be blocked until compliance is completed for the relevant period. Additionally, from recent compliance updates, GSTR-4 cannot be filed if more than three years have elapsed from the original due date, making timely filing essential to avoid permanent restriction.
It is also important to highlight that the threshold for opting into the composition scheme has been increased from Rs. 1 crore to Rs. 1.5 crore for eligible businesses. This revision is expected to encourage more small and medium enterprises to opt for the composition scheme, thereby increasing the number of GSTR-4 filings in the coming years.
Difference between Form GSTR-4 and Form GSTR-4A
| Aspect | Form GSTR-4 | Form GSTR-4A |
| Filing Frequency | Annual | Auto-drafted, no filing required |
| Purpose | Provides summary of outward supplies, tax paid, ITC reversed, etc. | Provides details of inward supplies from suppliers |
| Filing Requirement | Mandatory for composition scheme taxpayers | Auto-generated, no filing required |
| Content | Includes turnover, tax paid, invoices, etc. | Includes purchases from registered suppliers |
| Corrections | Amendments can be made in next financial year's return | Timely intimation to suppliers is necessary for rectification |
| Due Date | 30th of the month following the financial year end | No relevance, as no filing required |
Form GSTR-4 is filed annually by taxpayers under the composition scheme, providing a summary of their transactions. In contrast, Form GSTR-4A is auto-drafted, compiling details of inward supplies from suppliers, with no requirement for filing.
Prerequisites for filing GSTR-4
Before filing GSTR-4, taxpayers must ensure that they meet all mandatory prerequisites under the GST composition scheme. The most important requirement is that all four quarterly statements in Form CMP-08 for the relevant financial year must be duly filed and accepted on the GST portal. GSTR-4 cannot be submitted unless these quarterly payments and declarations are completed, as CMP-08 forms form the basis for tax paid during the year. In addition, the taxpayer must be actively registered under the composition scheme for at least part of the financial year for which GSTR-4 is being filed.
Another key prerequisite is the availability of accurate financial data, particularly the aggregate turnover of the previous financial year, which must be correctly reported while filing GSTR-4. This figure should be prepared in advance based on books of accounts and GST records, as errors may lead to inconsistencies in return validation. Taxpayers should also ensure that their GST registration status is active and that all basic business and tax details are updated on the portal before initiating filing. Meeting these prerequisites helps ensure smooth filing and reduces the risk of errors or rejection during submission.
How to file nil GSTR-4 return
A Nil GSTR-4 return can be filed when a composition taxpayer has no business transactions or tax liability during the financial year. This situation typically applies when all quarterly returns in Form CMP-08 have been filed as Nil, there are no outward supplies made during the year, and no inward supplies from registered dealers require reporting that affects tax liability. In such cases, the taxpayer is still required to file GSTR-4 to maintain compliance under the GST framework, even though no tax is payable.
The process of filing a Nil GSTR-4 return is simpler and quicker compared to a regular return. On the GST portal, the taxpayer can select the Nil filing option, confirm that all conditions for Nil return are met, and directly proceed to submission without entering detailed transaction data. Once filed, the Nil GSTR-4 is processed as a valid annual return. It is also important to note that the late fee structure for Nil returns is lower, with a maximum cap of Rs. 500, compared to Rs. 2,000 for returns involving tax liability, making timely filing essential even in cases of no activity.
Conclusion
In conclusion, GSTR-4 is an important annual return that businesses under the Composition Scheme must file to stay compliant with GST rules. Filing it on time helps avoid penalties and ensures smooth tax processes. This form summarises your sales, purchases, tax paid, and any refunds claimed, making GST compliance easier for small businesses. By understanding the GSTR-4 format and following the online filing steps carefully, you can file accurately and on time. Keeping track of due dates and details will help your business run smoothly and avoid unnecessary fines. Additionally, managing your business finances well, including considering options like a business loan and understanding the business loan interest rate, can support your business growth alongside proper GST compliance.
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