GSTR 4 for Composition Dealers

Hello, in this post we will discuss all about GSTR 4.

We will cover the following topics.

GSTR 4 meaning

GSTR 4 is for taxpayers who opt for the GST Composition Scheme in the new indirect tax regime. It is a quarterly return.

The business entities whose annual turnover is below Rs. 1.5 Crore and who fulfills other specified criteria can register under the Composition Scheme.

Unlike a normal taxpayer who needs to furnish 3 monthly returns, a dealer who opts for the composition scheme is necessary to furnish only 1 return which is GSTR-4.

You need to take into consideration that the dealers under the composition scheme will have to pay taxes at the fixed rates, without availing Input tax credit (ITC) facility.

Who should file GSTR-4 form?

All the taxpayers who have registered under the composition scheme are required to file the tax return. The persons who are not eligible to file GSTR-4 are:

  • Non-resident Taxable Persons
  • Taxpayers who are liable to collect TCS
  • Input Service Distributors(ISD)
  • The Taxpayers who are liable to deduct TDS
  • Composition Dealers
  • Compounding taxable person
  • Suppliers of OIDAR

Pre-requisites to file GSTR-4

  • The taxpayer should compulsorily have a composition dealer registration under GST
  • One should involve in Intrastate trade only.
  • You need to keep track of all the purchases and imports made during this quarter.
  • The aggregates turnover must be less than Rs 1.5 Crore per annum of your business.

GSTR-4 due date

GSTR-4 filing should be on a quarterly basis. The due date to file GSTR 4 is the 18th of the month after the end of the quarter.

GSTR-4 late fees and Penalty

If GSTR-4 is not filed, the penalty of Rs 200 per day is levied. The maximum penalty limit is Rs. 5000

Also, the taxpayer cannot file the current quarterly returns unless they have filed the previous quarter returns.

As per Notification No. 73/2017 – Central Tax late fees for GSTR-4 is brought down to Rs. 50 per day in case of default. Also, the late fee for the filing of NIL GSTR-4 is brought down to Rs. 20 per day in case of delay.

GSTR-4 Format

You can download the format of GSTR-4 here.

Related: GSTR 9 – A complete guide

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