GSTR-4 Composition Scheme
Form GSTR-4 is a quarterly return that needs to be filed by taxpayers who have opted for the Composition Scheme under the Goods and Services Tax (GST) in India. The Composition Scheme is designed for small businesses, allowing them to pay a fixed percentage of their turnover as tax and enjoy certain simplifications in compliance.
Here are the key details related to Form GSTR-4:
Frequency of Filing:
GSTR-4 is a quarterly return, and it needs to be filed by taxpayers under the Composition Scheme.
Due Date for Filing GSTR-4:
The due date for filing GSTR-4 is on or before the 30th day of the month succeeding the quarter. For example:
- Quarter 1 (April to June): Due by 31st July
- Quarter 2 (July to September): Due by 31st October
- Quarter 3 (October to December): Due by 31st January
- Quarter 4 (January to March): Due by 30th April
Contents of GSTR-4:
- GSTR-4 includes details of the taxpayer’s outward supplies, tax liability, and payment of tax during the quarter.
- It also provides a summary of the taxpayer’s purchases during the quarter.
Due Dates for Quarterly Filing:
The due dates for filing quarterly returns are as follows:
- April to June (Q1): By 31st July
- July to September (Q2): By 31st October
- October to December (Q3): By 31st January
- January to March (Q4): By 30th April
Details Required in GSTR-4:
The following are some of the key details required in GSTR-4:
- Details of outward supplies, including supplies made through e-commerce operators.
- Taxable and non-taxable outward supplies.
- Details of advances received and tax payable on advances.
- Details of reverse charge supplies.
- Details of tax paid.
Invoices and Vouchers:
- Taxpayers under the Composition Scheme are not required to upload invoices in GSTR-4. Instead, they need to provide consolidated details.
Amendments in GSTR-4:
If there are any amendments to be made in the return filed for a previous quarter, taxpayers can do so in the next quarter’s return.
Late Fees for Delayed Filing:
Late fees may be applicable for delayed filing of GSTR-4. The late fee is Rs. 200 per day of delay (Rs. 100 for CGST and Rs. 100 for SGST) up to a maximum of Rs. 5,000.
Opting Out of Composition Scheme:
If a taxpayer wishes to opt out of the Composition Scheme, they need to file Form GST CMP-04.
It’s essential for businesses under the Composition Scheme to comply with the filing requirements and deadlines to avoid penalties. Additionally, businesses should stay updated on any changes or updates to the GST laws and regulations. Businesses are advised to refer to the latest notifications and guidelines issued by the GST authorities or consult with a tax professional like Legato Business Solution LLP for the most current and accurate information.