The composite scheme was introduced to make compliance simple and easy for small businesses. It is mandatory for all taxpayers registered under the composite scheme to file annual return in form GSTR-4. Taxpayers whose business turnover is less than Rs.1.5 crores can opt for the composition scheme by registering in the GST portal. It comprises of summarized details of the outward and inward supplies and their tax liability. Even assesses who have not made any supplies or not received any goods or services and have no liability to report also have to file a nil return.
Prerequisites for Filing GSTR
- Taxpayers must have registered and opted for the composition scheme under GST even for one day during the relevant financial year.
- Taxpayers must have filed all the relevant form CMP-08 statements for all the quarters of the financial year.
Details Required in GSTR-4: GSTR-4 Format
The Annual GSTR-4 has nine sections comprising of the following
Table 1 to 3
Here the basic information about the taxpayer like name, GSTIN, aggregate turnover in previous financial year, ARN and date of ARN. These details are auto populated at the time of filing the return.
This table consists of the details of inward supplies. It is divided into four subsections as follows
4A: It contains details of supplies that a composite dealer receives from registered suppliers. It includes intra-state and inter-state transactions on which reverse charge cannot be applied.
4B: This part of the table consists of details of supplies received by a composite dealer from a registered supplier including both intra-state and inter-state transactions which attract reverse charge.
4C: This section consists of information about unregistered suppliers’ supplies, both intra-state and inter-state supplies.
4D: This section deals with all taxable import services on which reverse charge is applicable.
This table is auto populated with the summary of one’s liability as per form CMP-08. The consolidated payment details of form CMP-08 including details of payment made on inward supplies that attract reverse charge, outward supplies, interest paid and amount of tax are shown here. These details cannot be edited.
Read More: GSTR-4 Meaning & Applicability
This table comprises of the composition dealer’s outward supplies and inward supplies where reverse charge is applicable. It also consists of the details of tax, like rate and amount of tax. The amounts of IGST, CGST, SGST, and Cess are auto-populated.
This table comprises of the GSTIN of the deductor/e-commerce operator, their gross invoice value and amount of TDS deducted. Any TDS/TCS from a supplier of e-commerce operator gets auto-filled in this table.
This table contains information on tax, interest and late fees, both payable and paid. Tax and late fee are auto populated in table 8 and user has to input interest. Both will be displayed and the assesses can discharge the liabilities through electronic cash ledger only. The table has the following information:
Tax Amount Payable: This gets auto-populated from table 6 of GSTR-4.
Tax Amount Paid: This is auto-populated from form CMP-08.
Balance Tax Payable: This is the difference between the above two amounts.
Amount of Interest Payable and Paid: This is the interest payable or paid due to late filing.
Amount of Late fee Payable and Paid: This refers to the late fee payable on delayed payment of GST and amount already paid. It is calculated by the GST portal as prescribed and reflected in this section.
This table consists of the amount of tax refund where excess taxes are paid. The refund amount is bifurcated into amount of tax, interest, penalty, late fees and others.
Due Date for Filing GSTR-4
The due date for filing the return is 30th of the month succeeding the financial year or as extended by the Government from time to time. The due date for filing Form CMP-08 containing details of payment of self-assessed tax every quarter is 18th day of the month succeeding such quarter. Annual return in GSTR-4 can only be filed if all applicable quarterly CMP-08 of that financial year have been filed.
Details Required in CMP-08
Consists of GSTIN of the assessed, legal and trade names, aggregate turnover in the previous year, summary of self-assessed liability of outward supplies, inward supplies attracting reverse charge and import of services, tax payable, interest payable, tax and interest paid. The last part is the verification part.
Consequences of Non-Filing of CMP-08
If the taxpayers opting for the composition scheme fail to file form CMP-08 within the specified due date, they would be liable to pay late fees and penalty from the due date of filing till the actual date of filing the return. Further if the CMP-08 of two consecutive quarters are not filed then the e-way bill generation gets blocked. For unblocking, the taxpayers need to apply to the jurisdictional tax office in form GST EWB 05 and have to file all pending forms of previous quarters.
Consequences of Non-Filing of GSTR-4
Late fees and penalties are applicable for late filing of GSTR-4. Late fees of Rs.50/- per day up to a maximum of Rs.2000/-, and Rs.500/- where the tax liability is nil is applicable for late filing of GSTR-4. If the taxpayer fails to file GSTR-4 for a particular tax period, they will not be able to file the return for the next tax period. Interest at the rate of 18%oer annum is applicable for the number of days of delay for late filing of GSTR-4.
Revision of GSTR-4
There is no option to revise GSTR-4 after it has been filed. Any modifications have to be included in the next return.
Frequently Asked Questions
- Should the taxpayer who has opted out of the composition scheme during the financial year file GSTR-4?
Answer: Taxpayers who are registered under the composition scheme even for a single day have to compulsorily file GSTR-4 for that financial year.
- How is the excess tax paid adjusted in GSTR-4?
Answer: The taxpayer can request a refund of the excess amount in the following financial year.
Related Read: Eligibility Criteria for Filing GSTR-4
Taxpayers registered under the composition scheme must compulsorily file form GSTR-4 once a year and CMP-08 for the payment of tax every quarter. Knowledge of the details required in the returns and the records to be maintained is important so that the returns can be filed within the due date and late fees and penalties can be avoided.