The GSTR- 4 form is a quarterly return form for those taxpayers who have opted GST Composition scheme in the new indirect tax regime. Under the GST composition scheme, taxpayers will be required to file one only return in every three months (quarter) rather than three returns in every month. Not all businesses will be eligible to register under the GST composition scheme, only those business entities whom annual turnover below Rs 75 lakh and fulfils other criteria’s can be entitled to register under the Composition Scheme. The information details in GSTR 4 form should be filled in between 11th and 18th of the month following the quarter of the relevant tax period.
The GSTN Portal is also available with GSTR 4 offline tool based on excel worksheets. The offline tool on excel sheet is offered for simple GST returns filing for the GSTR 4 returns. Download offline GSTR 4 utility here.
Salient Features of GSTR 4 Return Form
- GSTR 4 Returns will file on the quarterly basis for compounding Taxable persons. The last date for filing the GSTR- 4 Returns is 18th of the month following the quarter. GSTR 4 returns can be filed on 18th April, 18th July, 18th October and 18th January and so forth
- GSTR – 4 Form is filed by all the taxpayers who registered under the composition scheme
- Business entities registered under the composition scheme will be required to pay taxes at fixed rates and file returns quarterly without availing input tax credit facility
- The taxpayer will be required to show the total value of supplies made in a specific period and tax paid at the composition rate
- The taxpayer will be required to insert invoice- level purchase details for the purchases from normal taxpayers, which will be automatically updated GSTR 4A Form from supply invoice uploaded by the opposite party in GSTR 1
Who Should File GSTR 4 Form
All the composite registered taxpayers are required to file the tax return except:-
- Non-resident Taxable Person
- Taxpayers liable to collect TCS
- Input Service Distributors
- Taxpayers liable to deduct (TDS)
- Composition Dealers
- Compounding taxable person
- Suppliers of OIDAR (Online Information and Database Access or Retrieval)
Revised: Deadlines for Filing GSTR 4 Returns
| Quarter | Last Date of Filing |
|---|---|
| Second Quarter | 24th December 2017 |
| Third Quarter | 18th January 2018 |
Interest on Late Payment of GST Tax & Missing GST Return Due Date Penalty
GST Council clearly stated in acts that if a person has not paid the taxes before the due dates, then the GST Council has strict rules and regulations to accommodate it with 18 % interest rate per year. The interest rate is applied to the number of days the taxpayer missed out. To look into the act clearly you can read the information from point 50 of chapter 10 here: https://cbec-gst.gov.in/CGST-bill-e.html
If we take the illustration of it, a person missed out the due date of yesterday, then the taxpayer has to pay 1000*18/100*1/365 = Rs. 0.49 for one day and the calculation varies on payable tax and the total missed out days.
In addition, if there is no issue regarding the tax payment and person is missed out the GSTR filing due dates, in this case, the person is again liable to pay penalty under GST Council which is Rs.100 for CGST and Rs.100 for SGST per day. The maximum amount in the case of missing the filing is INR 5000.
Note: For subsequent months, i.e. October 2017 onwards, the amount of late fee payable by a taxpayer whose tax liability for that month was ‘NIL’will be Rs. 20/- per day (Rs. 10/- per day each under CGST & SGST Acts) instead of Rs. 200/- per day (Rs. 100/- per day each under CGST & SGST Acts).
Important Terms Frequently Used in GSTR 4
- GSTIN – Goods and Services Taxpayer Identification Number
- UIN – Unique Identification Number
- UQC – Unit Quantity Code
- HSN – Harmonised System of Nomenclature
- SAC – Services Accounting Code
- POS – Place of Supply of Goods and Services
- B2B – From one registered person to another registered person
- B2C – From registered person to unregistered person
HSN: Harmonised System of Nomenclature (HSN code is filled in case of supply of goods)
- A taxpayer will be required to provide the aggregate turnover of the immediately preceding financial year and the first quarter of the current financial year.
- The taxpayer will be required to furnish all the information only in the first year and it will be automatically updated in the succeeding years.
Let us understand the step- by- step guide filing procedure of GSTR 4
GSTR 4 return form is divided into 13 sections but it is not necessary to fill all these sections. Some of the details of sections in GSTR 4 form are given below:-
Part 1 to Part 3 – General Information
- GSTIN:- Every Taxpayer gets a state-wise PAN-based 15 digit Goods and Services Taxpayer Identification Number (GSTIN) from the Government. It must be noted that the identification of the taxpayer will be automatically filled at the time of filing return in coming future
- Legal Name of the Registered Person and Trade name (if any):- The taxpayer name will automatically fill time of filing the returns at GSTN portal
- Annual Turnover in the preceding Financial Year:- A taxpayer will be required to fill all the information only for the first time of filing and after then it will be automatically updated in the succeeding years
Part 4 – Inward supplies including supplies on which tax is to be paid on reverse charge
- Inward supplies received from a registered supplier (other than supplies attracting reverse charge), the information will be auto-populated from the provided by the supplier in GSTR-1 and GSTR-5. Inward supplies received from a registered supplier (attracting reverse charge- this information will be automatically filled from the information provided by the supplier in GSTR-1, inward supplies received from an unregistered supplier and Import of service. It must be noted that all inward supplies to a composition will auto-filled here
Part 5 – Amendments to details of inward supplies furnished in returns for earlier tax periods in Table 4 [including debit notes/credit notes and their subsequent amendments]
- It will include amendment information mentioned in earlier tax periods and also original amended of debit or credit note received, rate- wise. Place of supply to be mentioned in case if the same is different from the location of the recipient. While providing the information of original debit /credit note, the details of invoice must be provided in starting three columns, whereas, providing revision of the details of original debit /credit note shall be provided in the first three columns of this Table
Part 6 – Tax on outward supplies made (Net of advance and goods returned)
- Under this section, you will be to provide the details of outward supplies which includes advance and net of goods returned during the current tax period
Part 7 – Amendments to Outward Supply details furnished in returns for earlier tax periods in Table No. 6
- Under this section, you will be able to rectify the incorrect details you provided in Table 6 in previous returns
Part 8 – Consolidated Statement of Advances paid/Advance adjusted on account of receipt of supply.
- Under this, details of advance paid relating to reverse charge supplies and if you paid taxes on them, adjustments against invoices issued to be mentioned in Table 8
Part 9 – TDS Credit received
- TDS (Tax Deduct at Source will be auto-filled in Table 9
Part 10 – Tax payable and paid
- Under this section, you will be to provide the details of Integrated Tax, Central Tax, State/UT Tax and cess tax amount payable as well tax amount paid
Part 11 – Interest, Late Fee payable and paid
- This section for those taxpayers who have not paid the taxes timely
Part 12 – Refund claimed from Electronic cash ledger
- If in case the tax liability of the composition dealer is below than the TDS deducted, he can get a refund of balancing amount. The amount which is available for refund will auto-filled under this section
Part 13 – Debit entries in cash ledger for tax /interest payment [to be populated after payment of tax and submissions of return]
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