Know all about GSTR 4
Hemlata Khandenwal / 2020-03-02 12:03:24


GSTR 4 is a return dealing with the purchase details which is based on the quarterly system. It means the taxpayers have to file this return four times per year. The GSTR 4 return is to be filed by the taxpayers who have registered himself as the composition dealers under the GST portal.

Every year a general taxpayer needs to file 3 returns every month namely GSTR 1, GSTR 2 and GSTR 3. Similarly, a taxpayer registered as a composite dealer will have to pay a single return that is GSTR 4. According to the Government, the composition dealers will be defined as small traders whose annual turnover will be below 1.5 crore rupees. 

Why GSTR 4 was introduced?

According to the GST law, the GSTR 4 return is filed by the composite dealers whose annual turnover is less than Rs.1.5 crore. The Government states that these dealers are small traders and have to go through the complications and compliances for filing their returns. This can make the small traders bear some expenses. Hence, the government introduced the GSTR 4 that needs to be filed quarterly each year.

Who is liable to file the GSTR 4 return?

Only the taxpayers, who are registered as composition dealers with an annual turnover of less than Rs.1.5 crore, are required to file the GSTR 4 return. A general taxpayer does not need to file the GSTR 4. Unlike the normal taxpayers, the composite dealers have to file only one return which is GSTR 4.

What is the due date for filing the GSTR 4 return?

The GSTR 4 is to be filled on a gap of 3 months that means at the end of every quarter. The due date set by the government for filing the GSTR 4 return is the 18th of the subsequent month after the end of the quarter.

If the composite dealers fail to file the return on its due date, then he will be liable to pay the penalty amount.

Can we revise the GSTR 4 return?

No, it is not possible to make any changes in the GSTR 4 return. The taxpayer will not get any opportunity to review the GSTR 4. However, if they have made any mistake in filing the GSTR 4 return, it can only be rectified while filing the next return in the next quarter. 
Penalties faced for late Return Filing

  • If the taxpayers fail to submit the return on its due date, then he will be charged late fine as discussed below:
  • Rs.50 per day after the failure of filing the GSTR 4 (earlier, it was Rs.200 per day)
  • In case of filing a Nil return, the taxpayer will be charged Rs.20 per day.
  • The maximum amount charged as penalty fee cannot exceed Rs.5000. 
  • If the taxpayers have not filed his return, he won’t be able to file the next return in the subsequent month.
So, GST Return Filing on its due date is necessary for avoiding the penalties and late fines. For filing the returns you must be registered on the GST Portal. In case you are not registered follow Legal Salaah to get the best facility for GST Registration Online

Procedures to be followed for filing GSTR 4

GSTR 4 returns can be easily filled through the GST Portal. We have discussed the steps below that will help you to file the GSTR 4 return.

Step 1: At first, you need to login to the official GST Portal.

Step 2: Select the “Return Dashboard” option from the screen appeared.

Step 3: Fill the Financial year and the Return Filing Period of which you need to file the return.

Step 4: Now, look at the option that says “Quarterly returns for a registered person opting for composition levy (GSTR 4)” and click on the “Prepare Online” option on it.

Step 5: You need to fill all the questions with ‘Yes’ or ‘No’. Click on the options as per your requirement. Then, click on Next.

Step 6:  After that, some tables will appear on the screen. Click on each of the following and enter the required details. 

Step 7: Once all the details are filled, you need to click on “Proceed to File”. Now you are all set for filing the GSTR 4 return online

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