In this article we will look at GSTR-4 Return filing for taxpayers registered under composition scheme. They are required to furnish details regarding summary of outward and inward supplies, import of services and supplies attracting reverse charge.
Who should file GSTR-4 (Annual Return)?
All registered taxpayers who opted for the composition scheme should file this form. This includes the following:
A taxpayer who have opted for composition scheme and never opted out subsequently;
A taxpayer who has opted for composition scheme before the beginning of the financial year;
A taxpayer who has opted for composition scheme but opted out of it subsequently during the year.
Who doesn’t require GSTR-4 Return filing?
The following don’t require filing GSTR-4:
A taxpayer who has not opted in for composition scheme for any period during the financial year;
Non-resident taxable person;
Input Service Distributor;
Casual Taxable person;
Person required to deduct tax at source;
Person required to collect tax at source.
Due Date for GSTR-4 Return Filing
GSTR-4 is filed on annual basis. The due date for filing this form is 30th April following the relevant financial year. Until financial year 2018-19, the due date was 18th of the month after the quarter end.
22 Key Points to Know about GSTR-4 return filing under the GST Act
Entity Name – The Business entity name of a taxable registered person under composition scheme shall be auto-populated while signing in to GST Portal.
Business Address – The business address shall be auto-populated in return form. No need to fill it manually.
Tax Return Period– A registered taxable person registered under the composition scheme is required to select the return period from the drop-down in the form. A taxpayer must note that under the composition scheme, the return can be only filled on a quarterly basis.
Details of Inward Supplies including supplies received from unregistered persons – The inward supply from the registered taxable person shall be automatically populated from the counter party GSTR-1 or GSTR-4 of the taxable supplies. The inward supply from an unregistered taxable person needs to be provided manually and the taxpayers registered under the composition scheme must note that they shall fall under reverse charge tax payment system.
Amendments in inward supplies – Any amendment in inward supply from a registered or unregistered taxable person is required to be provided in this section of GSTR-4.
Details of import of goods (re-sale and capital) – Under this, the details of goods both for resale or capital goods have to be mentioned in this head with their respective HSN No.
Amendment in Import of goods– Any changed value of imported goods has to be mentioned in this head with complete details of earlier filed returns and invoice no.
Details of inward supplies of Services received from outside India – A taxable person registered under composition scheme and have availed services from outside India. The complete details are required to be provided under this head.
Amendments in the import of inward supplies received from outside – Any change in the import of services received from outside India by a taxable registered person under composition scheme has to be provided in this section.
Invoice wise Details of Outward Supplies Made – A taxable person registered under composition scheme is required to furnish the details of all outward supplies including non-GST goods under this section of GSTR-4.
Amendments to outward supplies– Any kind of change in outward supply must be made by a taxable person under the composition scheme of earlier tax period, can be modified under this section of GSTR-4. This will also affect tax liability due to a change in the value of outward supply.
Complete details of Credit or Debit Notes – A registered taxable person under composition scheme, whatever debit or credit notes have been issued during the tax period has to mentioned under this head of return.
Amendment in Credit or Debit Notes – Any change in credit or debit notes of earlier tax period needs to be mentioned under this segment.
Details of TDS Credit received– A registered taxable person registered under composition scheme and TDS has been deducted a taxable person under the GST Act. The details shall be auto-populated from GSTR-7 of the counterparty.
Details of Tax Liability under reverse– Details of inward supply from an unregistered taxable person without an invoice have to be reported under this head.
Amendment in Tax Liability under Reverse Charge– Any amendment in tax liability under reverse charge should be mentioned under this head.
Details of Tax already paid under reverse charge – Any tax paid against reverse charge liability has to be mentioned here.
Tax Payable – GST liability payable by a registered taxable person under the composition scheme shall be automatically calculated based on information from point no 1 to 17.
Details of Tax Payment – A registered taxable person under composition scheme has to provide the details of GST Liability.
Refund Claimed – A registered taxable person can claim a refund of excess tax when tax liability less than the TDS deducted and the refund amount shall be auto-populated from details provided in point no. 1 to 20.
Declaration about the composition scheme turnover limit – As per GST Law, every taxable person has to declare that whether he is likely to cross the turnover limit (Currently Rs. 1.5 Crore) before the date of the next return. By Submitting a reply as Yes or No the taxable person must ensure that whenever he crosses the turnover limit under the composition scheme, he must pay taxes under the normal provision.
E-Signature of GSTR-4 –The return can be signed by the use of Digital Signature Certificate (DSC) or Aadhar OTP based verification.
What happens after GSTR-4 Return Filing?
After a GSTR-4 is filed, then:
An ARN will be generated on successful filing;
An SMS will be sent to the mobile number of the authorized signatory on successful filing;
Electronic cash ledger and electronic liability register will get updated.
Enterslice advisory on GSTR-4 Return Filing on GST Portal
The Registration under composition scheme is only allowed for certain business activities. GSTR-4 Contains detail of goods total value of the sales and supplies made, details of TDS, Tax paid and details of purchase made under during a tax period.
We expect that more than 14 Million Business will apply for GST Registration and the Government is trying to promote the small and micro business and continue providing them a hassle-free compliance environment. Composition scheme has been launched towards the ease of doing business in India. Under this scheme a registered taxable person is required to furnish only one return every 3 months.
It may be noted that one cannot revise the form after GSTR-4 Return filing. In case of any query related to GST, contact Enterslice.
Ashish M. Shaji has done his graduation in law (BA. LLB) from CCS University. He has keen interests in doing extensive research and writing on legal subjects especially on criminal and corporate law. He is a creative thinker and has a great interest in exploring legal subjects.