GSTR-4: Annual Return for Composition Scheme Dealers - Due Date, Format, and Late Fees (2026)

Composition taxpayers must satisfy the applicable turnover, supply and compliance conditions throughout their participation. Crossing the relevant limit or breaching another condition can require withdrawal from the scheme.

Turnover eligibility alone does not establish entitlement to the scheme; the business must also meet the activity-specific and procedural conditions.

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 capture basic details about 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. You enter it on the annual return page, and the portal does not let you proceed without it. Enter 0 if you registered during the current financial year or had nil turnover. This helps determine whether the business qualifies for the Composition Scheme
• Acknowledgement Reference Number (ARN): This is a reference number that is generated when the return is filed successfully
• ARN date: The date on which the ARN was generated

The ARN and its date appear only after the return is filed. The aggregate turnover is entered by the taxpayer.

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 receive
• d 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.

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.

The table answers four common doubts of a composition dealer.

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)

A GSTR-4 return cannot be filed once more than three years have passed from its original due date, which makes timely filing essential to avoid a permanent bar.

The turnover limit for goods under the Composition Scheme was raised from Rs. 1 crore to Rs. 1.5 crore from 1 April 2019, under Notification 14/2019-Central Tax.

The combined CGST and SGST late fee is generally Rs. 50 per day where tax payable in GSTR-4 is not nil, capped at Rs. 2,000. Where tax payable is nil, it is Rs. 20 per day, capped at Rs. 500. These caps apply from FY2021–22 onwards, subject to any notified relief.

The caps are reached after 40 days and 25 days respectively. The nil-tax category depends on the tax payable in the return, not whether an additional payment remains after filing CMP-08.

Interest on delayed tax payment is separate from the filing late fee. For example, assuming an applicable rate of 18% p.a., Rs. 10,000 of unpaid tax outstanding for 73 days attracts:

Interest = Rs. 10,000 × 18% × 73 ÷ 365 = Rs. 360

Count interest from the applicable tax-payment deadline, which may differ from the annual GSTR-4 filing deadline.

GSTR-4 is an annual return filed by composition taxpayers, while GSTR-4A is an auto-drafted statement used to review supplier-reported information.

Review GSTR-4A alongside your purchase records, but do not treat it as a substitute for preparing and filing GSTR-4.

Before preparing GSTR-4, confirm that you were registered under the Composition Scheme for at least part of the relevant financial year. Filing remains necessary even if you subsequently left the scheme or cancelled your registration.

Keep the following ready:

• CMP-08 statements: File all applicable quarterly statements for the year. Four statements are required only where composition applies throughout all four quarters.
• Previous-year turnover: Prepare the aggregate turnover figure requested by the portal. Enter zero where applicable, including the portal’s specified cases for current-year registration or nil previous-year turnover.
• Financial records: Reconcile sales, purchases, reverse-charge liabilities and tax payments with your books.
• Portal access: Ensure you can access the relevant return and have the authorised signatory’s required DSC or EVC verification arrangements.
• Outstanding amounts: Review any additional tax, interest or late fee payable before filing.

Do not assume that registration must still be active: cancellation does not remove an outstanding GSTR-4 filing obligation.

You can file a nil GSTR-4 only when, for the relevant financial year:

• Outward supplies: No outward supplies were made.
• Inward supplies: No goods or services were received.
• Tax liability: No other tax liability needs reporting.
• CMP-08 statements: All applicable quarterly statements were filed as nil.

Having no additional tax to pay after CMP-08 does not, by itself, make the annual return nil.

To file:

• Open the annual return: Log in to the GST portal and select ‘Services’ > ‘Returns’ > ‘Annual Return’.
• Choose the year: Select the relevant financial year and open GSTR-4.
• Select nil filing: Tick the ‘File Nil GSTR-4’ option after confirming eligibility.
• Review amounts: Check any interest or late fee shown and discharge applicable amounts.
• Verify and file: Complete the declaration and file using the available DSC or EVC option.
• Save confirmation: Retain the ARN and filed return.

Nil returns still attract late fees when filed after the applicable deadline, subject to notified caps and relief.

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.