GST was implemented to improve tax consistency and transparency and its impacts have been nothing less than spectacular. GST return form filing and registration processes have made paying taxes easier than ever before, benefiting the business sector. Also, calculating taxes is simple today, as all you need to know is how to calculate GSTR-4. Because this comprehensive tax has dissolved several other forms, the calculation is not complicated. As a result, there are fewer chances of committing missteps. There are several forms to assist taxpayers in complying with GST regulations. GSTR-4 is one of the forms.
Read on to understand everything about�GSTR 4
What Is GSTR 4?
GSTR 4�is a registered taxpayers form who have signed up for the composition scheme and must file once every three months. The GSTR-4 includes the entire amount of the supplies and sales made, the tax paid at the compounding rate and invoice-level information about purchases made from other registered taxpayers by the composition vendor throughout the tax period. When you buy from a registered vendor, you can utilize the details from their sales returns on your GSTR-4. Before filing your return, you can double-check this information, make adjustments as needed and fill in any sections that were not auto-populated.
Who Should File the GSTR 4?
Any taxpayer who has chosen the GSTR-4 composition scheme must complete the GSTR-4 filing process. Taxpayers with a company turnover of fewer than 1.5 crores can apply for the exemption using the GST site. However, certain taxpayers are not eligible for the GST composition plan. Those are as follows:
- Any supplier who is not in the restaurant industry.
- A non-resident or a resident taxable person (whose yearly business turnover exceeds 1.5 crores).
- Any company that sells things using an e-commerce platform.
- Manufacturers of paan masala and tobacco.
- Ice cream or ice cream-based product manufacturers.
- Supplier of items free from GST.
- Supplier of interstate commodities as well as non-taxable items.
Due Date to File GSTR-4
This return can be filed as soon as the current fiscal quarter ends. The GSTR-4 must be filed by the 18th of the month after the end of the quarter. For example, if you are filing the�GSTR 4�for the July-September quarter, you must do so by December 24th, 2022.
Prerequisites for Filing GSTR-4
- You must be a registered taxpayer and a GST composition merchant.
- Your company’s total annual revenue must be less than Rs. 75 lakhs.
- You should only engage in intrastate trading.
- You must keep detailed records of all purchases and imports done throughout the quarter.
What Is the GSTR 4 Format?
The�GSTR 4�annual returns form format consists of nine tables. These are:
Tables 1�3
Tables 1-3 provide basic information about a taxpayer, such as the individual’s name, GSTIN, aggregate turnover in the previous fiscal year, ARN and ARN date. When you file a return, these details are automatically filled in.
Table 4
In this part, taxpayers must supply information about their inward supplies. It is broken into four parts, as listed below:
- 4A: It provides information that a composition dealer gets from a GST-registered supplier. This list of suppliers includes intrastate and interstate transactions that are not subject to the reverse charge.
- 4B: This section contains information about supplies obtained by a composition dealer from a registered supplier, including intrastate and interstate transactions. These supplies must draw a reverse charge.
- 4C: In this part, a taxpayer submits information regarding unregistered supplies, including intrastate and interstate supplies.
- 4D: Because of the possibility of a reverse charge, this part collects information on all taxable import services.
Table 5
This table auto-populates the overview of one’s self-assessment liabilities as per Form GST CMP-08. It unifies the payment data recorded on CMP-08 forms in a fiscal year, including information on payments made on inward supplies that generate an outward supply, reverse charges, interest paid and tax amount.
Table 6
Composition dealers are expected to provide data on their outward supply as well as inside supplies when a reverse charge is relevant under this table. Table 6 requests tax information, such as the rate and amount of tax, in addition to these facts. However, the CGST, IGST, SGST and Cess amounts are auto-populated.
Table 7
Taxpayers must provide the GSTIN of the deductor/e-commerce operator, the gross invoice value and the amount of TDS deducted in this section. Any TDS/TCS collected from a supplier or e-commerce operator is automatically included in this section.
Table 8
It includes tax, interest and late fees, both payable and paid. It includes the following information:
- Payable tax amount: It is automatically filled from GSTR 4 table 6.
- Tax Amount paid: This information is auto-filled according to Form CMP-08.
- Balance tax payable: It is the difference between the two tax amounts mentioned above.
- Amount of interest payable and paid: It includes the interest due or paid for late submission of taxes.
- Amount of late fee payable and paid: It includes the late fee payable on late GST payment as well as the amount paid. Late fees for composition taxpayers are Rs. 200 per day beyond the due date, up to a maximum of Rs. 5,000.
Table 9
This table allows taxpayers to receive a tax refund if they have paid too much in taxes. This reimbursement amount is divided as follows:
- Tax
- Interest
- Penalty
- Fee
- Others
How to File GSTR 4 Online?
A taxpayer can complete the�GSTR 4�filing procedure online by following the steps outlined below:
- Step 1: The taxpayer must first log in to the GST portal using their credentials.
- Step 2: They must choose the ‘Services’ page and the ‘Returns’ tab.
- Step 3: The taxpayer must then select ‘Returns Dashboard.’
- Step 4: The taxpayer must next pick the fiscal year and, subsequently, the filing period.
- Step 5: After that, users must click on Quarterly Returns�GSTR 4�and then pick ‘Prepare Online.’
- Step 6: After completing the preceding step, the taxpayer must respond to critical questions with a ‘Yes’ or ‘No.’
- Step 7: After completing the preceding step, they must click ‘Next’ to proceed.
- Step 8: Following that, the taxpayer will be sent to a screen that displays the fields for which they selected ‘Yes’. They must fill in all necessary information in each of the parts that the user sees.
- Step 9: After that, the taxpayer must click on ‘Preview’ to check all of the information given. It is advised that the taxpayer save a PDF copy of the form for reference purposes or personal filing.
- Step 10: The taxpayer must then select ‘Proceed to File’ to calculate the interest, late charge (if any) and total tax obligations.
- Step 11: Following the previous step, taxpayers must file taxes while authenticating their identification. They can do so using either a Digitally Signed Certificate or an Electronic Verification Code. To continue, the taxpayer must choose the option that best suits their needs.
- Step 12: After completing step 11, the taxpayer will get a confirmation message on their device as well as an Acknowledgement Reference Number that they must record. This notification confirms that the taxpayer has finished the�GSTR 4�online filing process successfully. Shortly after, the position of the returns will be updated to ‘Filed.’
Things to Know When Filing GSTR-4 Returns
Some things that a taxpayer should keep in mind when preparing�GSTR 4�returns are as follows:
- If the GSTR 4 returns are not filed on time, the taxpayer will be charged a late fee of Rs 200 each day, up to a maximum of Rs 5,000. If the taxpayer is not required to pay any tax for that time, they will be penalized Rs 20 for each day the GSTR-4 filing deadline is missed.
- If a taxpayer fails to file GSTR-4 for a tax period, they will be unable to file it for the following tax month.
- To file their GSTR 4 yearly returns, taxpayers can use third-party software.
- Once filed,�GSTR 4�returns cannot be amended or modified.�
FAQs on GSTR-4
The following Frequently Asked Questions will give you a better understanding of the GSTR-4 filing process.�
What is the GSTR-4 turnover limit?
If a taxpayer’s annual turnover is less than Rs. 1.5 crores, they can use the Composition Scheme and file a GSTR 4. This ceiling is reduced to Rs. 75 lakhs for the North Eastern states and Himachal Pradesh.
Are late fines for GSTR 4 waived?
No, late fines for GSTR 4 are not waived. According to GST rules, a late fee of Rs. 50 per day is levied for failure to file GSTR-4 on time. However, if the entire amount of tax owed is zero, a late fine of up to Rs. 500 might be levied.
Can GSTR 4 be revised?
GSTR 4 cannot be revised. Details that were recorded wrongly can be rectified in the next period’s GSTR-4 return. GSTR 4 allows for the modification of information provided in prior tax seasons.
Is it compulsory to file GSTR 4?
Yes, you are mandated to file the annual returns under form GSTR 4 for the fiscal year., even if your registration is revoked or you opted out of the scheme.
Is Table 4A of GSTR 4 requisite?
Only the details of inward supplies from a registered supplier (Table 4A) are not required, but all other inward supplies, such as those attracting reverse charge (Table 4B), supplies from an unregistered supplier (Table 4C) and supplies relating to the import of services (Table 4D), must be provided.
Every eligible individual is paying the tax in one way or another. Furthermore, some people pay taxes for certain products while rejecting others. Keeping this in mind, the administration has contemplated implementing the GST. Undoubtedly,�GSTR 4�has made it incredibly simple for everyone to pay their taxes and has increased transparency throughout the process.
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