GSTR-4: Meaning, Due dates, Late fees and Penalty
GSTR-4 Guide
In this post, we’ll discuss GSTR-4: meaning, due dates and its other aspects. Let’s take a closer look at each section:
What is GSTR-4?
A GSTR-4 is a document required to be filed once every three months by registered taxpayers who have signed up for the composition scheme (also known as composition vendors).
The GSTR-4 form for each composition vendor contains information such as the value of all sales and supplies, the total amount of tax paid at the compounding rate, and invoice-level details of any purchases made by the vendor during the tax period from other registered taxpayers.
When you purchase goods and services from registered vendors, the information from their sales returns (GSTR-1) will be available in the GSTN portal (as GSTR-4A) so that you can use it with your GSTR-4 when submitting your GST return. Before filing your return, you can review this information, make any necessary changes and add any facts that were not auto-populated.
Who should file GSTR-4?
A taxpayer who chooses the Composition Scheme must submit GSTR-4. Additionally, it covers the special composition scheme notified for service providers in CGST (Rate) notification number 2/2019 dated 7th March 2020.
Prerequisites for filing GSTR-4
- You must be a registered taxpayer and a GST composition seller.
- Your company’s total annual revenue must be less than Rs. 75 lakh.
- You should only engage in intrastate trading.
- You must keep detailed records of all purchases and imports done during this quarter.
Due Date for Filing GSTR-4?
The GSTR-4 filing is due every year on April 30th, following a financial year.
Is it possible to revise an already filed GSTR-4 return?
No, GSTR4 cannot be revised. A correction can be made to the details that have been entered incorrectly in the next period of a GSTR-4 return. GSTR4 allows the updating of information provided during previous tax periods.
Penalty & Late Fees
According to the most recent update, there is a maximum late fee of Rs. 2,000 and a late cost of Rs. 50 each day. Where there is no tax due, the maximum late fine is Rs.500.
Previously, a late fee of Rs. 200 per day was applied if the GSTR-4 was not filed by the due date. The highest late fee that could be levied was Rs. 5,000. The highest amount that may be levied for late payment was Rs. 5,000.
GSTR-4 Format
There are 9 parts in the revised annual Form GSTR-4:
(Table 1-3) : Basic details.
|
Table |
Details |
|
GSTIN |
When filing a return, the taxpayer’s GSTIN is automatically filled in. |
|
The taxpayer’s name |
When you file your return, the legal name and trade name will be auto-populated. |
|
Details on aggregate turnover |
The previous financial year’s total turnover will be auto-populated. Additionally, the ARN and ARN date will be auto-populated after submitting. |
(Table 4) : Inward supplies, including those subject to reverse charge tax.
|
Table |
Details |
|
4A: Supplies from a registered supplier (other than reverse charge) |
A taxpayer must supply information on all supplies obtained from a registered supplier (including interstate and intrastate goods) for which the reverse charge mechanism does not apply. |
|
4B: Supplies from a registered supplier (attracting reverse charge) |
4B: Goods obtained from a registered supplier (attracting reverse charge) |
|
4C: Unregistered supplier |
A taxpayer must provide information about all supplies obtained from an unregistered provider, including interstate and intrastate goods. |
|
4D: Import of services |
A taxpayer is required to provide information on all import services for which tax is payable due to the use of the reverse charge mechanism. |
(Table 5) : Summary of self-assessed liabilities as per Form GST CMP-08.
The information in this table is auto-populated from Form GST CMP-08. Form GST CMP-08 is used to make payments in each quarter of the year. This table will collect the payment data of all CMP-08 forms filed during the year, such as payments made on outgoing supplies, payments made on inward supplies attracting reverse charge, tax paid, and interest paid.
(Table 6) : Details of outward supplies/inward supplies generating reverse charge at each tax rate throughout the financial year.
A taxpayer must supply information on all outward and inward supplies subject to reverse charge tax, as well as the total taxable value. It will automatically calculate IGST, CGST, SGST, and Cess amounts.
(Table 7) : TDS/TCS Credit received
Any TDS/TCS credit received from a supplier or e-commerce operator will be auto-populated in this table. The taxpayer must provide the deductor’s GSTIN, gross invoice value, and amount of TDS deducted.
(Table 8) : Tax, interest, and late fees are all payable and paid.
|
Tables |
Details |
|
Payable tax amount |
This will be auto-populated with data from Table 6 above. |
|
Already paid tax amount |
According to Form GST CMP-08, this will be automatically filled up. |
|
Remaining tax due |
This is a difference of 1 and 2 above. |
|
Payable and paid interest |
The interest payable on late filing of a return, as well as the interest actually paid, should be noted here. |
|
Payable and paid late charge |
The late fine for late GST payment, as well as the amount actually paid, should be included here. |
(Table 9) : Refund Received From the Electronic Cash Ledger.
Using this table, you can request a refund if you have overpaid your taxes. It is advisable to divide the refund amount into tax, interest, penalty, and fee categories.
We have reached the conclusion of this post on GSTR-4. Feel free to share your views and opinions with us in the comment section below.
