Every registered person under GST is required to file an electronic return for a given tax period. Such a return needs to be filed within a time period applicable based on their dealer category under GST. Basically, tax return is a document that reflects the amount of income of a registered taxpayer. Such a document needs to be filed with the tax authorities in order to pay GST to the government.
Now, each type of registered dealer under GST needs to file return in the form prescribed by the government. Such dealer types include:
- normal registered dealers
- composition scheme dealers
- tax deductors
- input service distributors
- UN bodies/embassies
- Non-resident assessee
- Temporary registration
- E-commerce dealer
Therefore, there are different forms used to file returns by different registered dealers. When it comes to composition dealers, they are required to file return in Form GSTR-4. So, let’s understand what is GSTR-4 and what are its components.
What is GSTR-4?
GSTR 4 is a form used to file return by taxpayers who go for Composition Scheme under GST. Taxpayers registered under Composition Scheme are required to file GST return in Form GSTR-4.
Under GST, a normal registered dealer files two returns every month including GSTR-1 and GSTR-3B. Whereas, a composition dealer is required to file one return on quarterly basis in Form GSTR-4.
This is the very reason why many registered dealers with an annual turnover less than Rs 1.50 Crore opt for Composition Scheme. Easy compliance, quarterly return filing and payment of tax are few of the benefits due to which small registered dealers prefer availing composition scheme.
What is the Due Date of GSTR-4?
Composition dealers are required to furnish return after every quarter. The due date for filing GSTR-4 is 18th of every month following a given quarter. Say for instance, Kapoor Pvt Ltd is a composition dealer who needs to file his GST return for the quarter January – March 2019. The due date for filing GSTR-4 therefore would be April 18, 2019. Below are the due dates for filing GSTR-4 for the relevant quarters
Who Is Required To File GSTR-4?
Every registered taxpayer opting for composition scheme under GST files return every quarter in Form GSTR-4. Such a taxpayer is termed as Composition Dealer.
Who is a Composition Dealer?
A composition dealer is the one who goes for composition scheme under GST. Composition Scheme is an easy and hassle free scheme under GST. It allows the small taxpayers to do away with complex GST compliance in terms of filing returns and tax payment. Composition Dealers pay GST at a fixed rate of turnover and file return on a quarterly basis. Such a scheme can be availed by taxpayers whose annual turnover is less than Rs 1.50 Crores.
Components of GSTR-4?
There are 13 sections that form part of GSTR-4. For complete details with regards to the components, check out our article on components of GSTR 4 return.
What is GSTR 4A?
The outward supplies filed in GSTR-1 by the normal registered dealer gets auto-populated in GSTR-2A. Similarly, the outward supplies uploaded by the suppliers in GSTR-1/GSTR-5 and GSTR-7 get auto-populated in GSTR-4A for the composition dealers. In this case, the composition dealer acts as the recipient. Thus, all the purchases made by the composition dealer get uploaded automatically in GSTR-4A. This happens once the registered suppliers submit their information in GSTR-1/GSTR-5 and GSTR-7 against the GSTIN of the composition dealer.
Needless to say, GSTR-4A gets updated automatically with information regarding the purchases of the composition dealer. This happens only when the suppliers of the composition dealer submit the information in GSTR-1/GSTR-5.
Now, there might be a case where suppliers update information in GSTR-1/GSTR-5 after the composition dealer files GSTR-4. In such a scenario, the information in GSTR-1/GSTR-5 will be automatically updated to the next tax period of Form GSTR-4A.
Can GSTR-4 be Revised?
Unfortunately, GSTR-4 cannot be revised once the registered composition dealer files return on GSTN portal. The only way to rectify the mistake in the return filing is to update the same in the next month’s return filing. For example, Kapoor Pvt Ltd makes an error while filing GSTR-4 for the quarter January to March, 2019. The correction for the same can be made only when he files GSTR-4 for the next quarter, that is, in the return of April to June, 2019.
Penalty or Fee For Filing Late Returns
In case, the composition dealer does not file GSTR-4 for a given quarter, he is required to pay a penalty of Rs 50 per day of default. Further, the fees for NIL return in GSTR-4 is Rs 20 per day of delay. This is in accordance to the latest amendment made for late fees for GSTR-4. And the maximum penalty that can be charged to a composition dealer is Rs 5,000.
Furthermore, if a registered composition dealer fails to file return for a particular quarter, he cannot file the return for the succeeding quarter as well.