GSTR 4 returns must be filed by businesses that are registered under the GST Composition Scheme, which makes it easier for businesses to maintain GST compliance with a simpler quarterly GST filing and doing away with the responsibility of collecting GST on supplies.
What is GSTR 4 Return?
Under the GST Composition scheme, dealers need to file one GST return every 3 months, as opposed to filling 3 GST returns each month; since under the composition scheme dealers cannot lay claim to GST input tax GSTR 4, hence, is a consolidated form, with the details of purchases and supplies filed in the same form.
Who should file GSTR 4?
Any taxpayer who has opted for the Composition Scheme needs to file GSTR 4.
Due Date for filing GSTR 4
GSTR 4 needs to be filled on a quarterly basis and the due date for filing for GSTR 4 is the 24th of the month, post the end of the quarter.
For example: For the quarter of July 2017 to September 2017 the due date of GSTR 4 is 24th December 2017.
Information to be filed in GSTR- 4
- GSTIN: The state-wise PAN-based 15-digit GSTIN (Goods and Services Taxpayer Identification Number) received from the government needs to be entered in this field, enabling the automatic identification of the taxpayer while filing future returns.
- Legal Name of the Registered Person and Trade name (if any): This field will get filled automatically, post identification at the GSTN portal.
- Annual Turnover in the preceding Financial Year: The taxpayer is required to fill this information only the first time when filing the return, in successive filings this information gets automatically updated.
- Inward supplies including supplies on which tax is to be paid on reverse charge: All the purchased made by the taxpayer need to be filled here, including inward supplies from unregistered suppliers. Purchases from registered dealers will get automatically filled, on the basis of the GSTR-1 return filed by sellers. Since the tax that is to be paid under reverse charge is not covered under composition scheme hence, the detail is supposed to be entered manually and the tax has to be paid at normal rates, for Reverse Charge Mechanism.
- Amendments to details of inward supplies furnished in return for earlier tax periods in Table 4 [including Debit Note/Credit Notes and their subsequent amendments]: Any changes that the taxpayer needs to make in the details of inward supplies for earlier tax periods, need to be made here. Details like invoice amount, tax etc. can be corrected here, along with a Debit/Credit note issued by the taxpayer.
- Tax on outward supplies made (net of advance and goods returned): A record of all the sales that have been made by a composition dealer need to be filled in the table. In the Turnover field, the sum total of all the Bill of Supply generated in the quarter needs to be entered, with the GST amount being segregated into CGST and SGST/UTGST.
- Amendments in Outwards Supply details furnished in returns for earlier tax periods in Table No.6: Changes, if any, in the details of sales, as provided in previously filed returns are required to be stated here with original details.
- Consolidated Statement of Advances paid/Adjusted on Account of Receipt of Supply: The details of all the advances that have been paid for reverse charge supplies need to be mentioned here. Also, for all the advances that were paid in an earlier tax period but the invoices were paid in the current period need to be entered here too, so as to reduce the amount from total tax liability.
- TDS Credit received: If there was any TDS deducted by the supplier while making payment to the dealer, it needs to be entered here; along with the GSTIN of the deductor, Gross Invoice Value and the TDS amount.
- Tax payable and paid: Total tax liability and the tax paid needs to be mentioned in this table. Details like IGST, CGST, SGST/UTGST and Cess need to be mentioned separately.
- Interest, Late Fee payable and paid: Any Interest of late fees for filing the GST late need to be mentioned here. The interest/late fees payable and actual amount paid also need to be stated here.
- Refund claimed from Electronic cash ledger: Refund, if any, of excess taxes paid, can be claimed in this section. The refund has to be further differentiated into tax, interest, penalty fees and others.
- Debit entries in cash ledger for tax/ interest payment [to be populated after payment of tax and submission of return]: All the GST payments that have been made in cash, need to be mentioned here. The payments will also have to be further segregated into cash, interest paid and late fee paid.
Once the form has been duly filled and signed off with a declaration of correct information, the GSTR 4 return can be filed.
To make your filing seamless with auto reminders on returns, you can use third party software, such as GreenGST, rather than filing GSTR 4 directly on GSTN portal and let us assist you with all your GST related needs and queries.