How to File GSTR 4: A Step-by-Step Guide

Posted In | Finance | Accounting Software | Gridlex Academy | India Accounting Tax

What is GSTR 4? 

GSTR 4 is a monthly return form under the Goods and Services Tax (GST) in India that must be filed by taxpayers registered under the composition scheme. The composition scheme is a simplified GST compliance option for small businesses and taxpayers with an annual turnover below INR 1.5 crore (INR 15 million). Under the composition scheme, taxpayers are required to file GSTR 4 on a quarterly basis instead of monthly like other GST returns. In this article, we will provide a step-by-step guide on how to file GSTR 4.

 

 

How to File GSTR 4?

Step 1: 

Gather all necessary documents and information before you start the GSTR 4 filing process, it is important to gather all necessary documents and information. This includes details of your outward and inward supplies, GST liability, and input tax credit for the quarter. You will also need to have your GSTIN (GST identification number) and password ready.

 

Step 2: 

Log in to the GST portal. To file GSTR 4, you must log in to the GST portal using your GSTIN and password. If you have not yet registered for the GST portal, you will need to do so first.

 

Step 3: 

Navigate to the GSTR 4 filing page. Once logged in to the GST portal, navigate to the GSTR 4 filing page by clicking on the "File Returns" tab and then selecting "GSTR 4" from the dropdown menu.

 

Step 4: 

Fill out the GSTR 4 form On the GSTR 4 filing page, you will see a form with various sections that must be completed. These sections include details of your outward and inward supplies, GST liability, and input tax credit for the quarter. You will need to enter this information accurately and completely.

 

Step 5: 

Review and submit the GSTR 4 form. Once you have completed the GSTR 4 form, it is important to review your entries carefully to ensure that they are accurate and complete. If you need to make any changes, you can do so by clicking on the "Edit" button. Once you are satisfied with your entries, you can submit the GSTR 4 form by clicking on the "Submit" button.

 

Step 6: 

Make the payment If you have any GST liability for the quarter, you will need to make the payment at this point. You can do so by clicking on the "Pay Now" button on the GSTR 4 filing page. You can make the payment using one of the available payment options, such as net banking or debit/credit card.

 

Step 7: 

Print or save the acknowledgement. After you have successfully filed GSTR 4 and made the payment, if applicable, you will receive an acknowledgement receipt. You can print or save this receipt for your records.

 

That's it! You have successfully filed GSTaR 4 for the quarter. It is important to remember that GSTR 4 must be filed by the 18th of the month following the quarter. If you fail to file GSTR 4 on time, you may be subject to penalties and other consequences.

 

In conclusion, filing GSTR 4 is a mandatory compliance requirement for taxpayers registered under the composition scheme in India. By following the steps outlined in this guide, you can easily file GSTR 4 on the GST portal and stay compliant with GST rules and regulations.

 

When is GSTR-4 Due?

Under the composition scheme, taxpayers are required to file GSTR 4 on a quarterly basis instead of monthly like other GST returns. The due date for filing GSTR 4 is the 18th of the month following the quarter.

 

For example, if the quarter ended on March 31, the due date for filing GSTR 4 would be April 18. If the quarter ended on June 30, the due date for filing GSTR 4 would be July 18, and so on.

 

It is important to remember that GSTR 4 must be filed by the due date to avoid penalties and other consequences. If you are unable to file GSTR 4 on time, you may be able to request an extension or apply for late fee waiver by following the appropriate procedures.

 

Frequently Asked Questions: 

1. Who needs to file Form GSTR-4?

The following taxpayers are required to file GSTR 4:

  1. Small businesses and taxpayers with annual turnover below INR 1.5 crore (INR 15 million) who are registered under the composition scheme.
  2. Non-resident taxable persons who are registered under the composition scheme.
  3. Casual taxable persons and non-resident taxable persons who are registered under the composition scheme on a temporary basis.

It is important for taxpayers to understand their GST compliance requirements and file the appropriate returns as needed. Failure to file GSTR 4 on time can result in penalties and other consequences.

 

2. Is filing GSTR 4 mandatory?

Yes, filing GSTR 4 is mandatory for taxpayers registered under the composition scheme in India. 

 

3. Who doesn’t need to file Form GSTR-4?

The following taxpayers are not required to file GSTR 4:

  1. Taxpayers who are not registered under the composition scheme. These taxpayers are required to file regular monthly GST returns, such as GSTR 1 (sales return) and GSTR 3B (summary return).
  2. Taxpayers who are registered under the composition scheme but have annual turnover above INR 1.5 crore (INR 15 million). These taxpayers are also required to file regular monthly GST returns.
  3. Taxpayers who are registered under the composition scheme but are not engaged in any taxable supplies. These taxpayers are not required to file any GST returns.