GSTR-4 Annual Return Due for Taxpayers Opting for the GST Composition Scheme

Taxpayers registered under the GST Composition Scheme are required to file Form GSTR-4, the annual return for the financial year. Filing the return within the prescribed due date is essential to remain GST compliant and avoid late fees.

Who is Required to File GSTR-4?

Every taxpayer who has opted for the Composition Scheme under Section 10 of the CGST Act, 2017 is required to furnish an annual return in Form GSTR-4, including taxpayers covered under the special composition scheme for service providers.

Even taxpayers having Nil transactions during the financial year are required to file a Nil GSTR-4.

Due Date for FY 2025-26

As per Section 39(2) of the CGST Act, 2017 read with Rule 62 of the CGST Rules, 2017, and pursuant to CGST Notification No. 12/2024-Central Tax dated 10 July 2024, the due date for filing GSTR-4 has been revised.

For Financial Year 2025-26, the due date for filing GSTR-4 is 30 June 2026.

Information Required in GSTR-4

The annual return generally includes:

• Summary of outward supplies made during the financial year.
• Inward supplies, including purchases attracting reverse charge.
• Tax liability and taxes paid through Form CMP-08.
• Details of TDS and TCS credits, if applicable.
• Refund claimed, if any.

The figures reported in GSTR-4 should be reconciled with the quarterly CMP-08 statements filed during the year.

Consequences of Late Filing

Failure to file GSTR-4 within the prescribed due date may result in:

• Late fee under the CGST and SGST Acts.
• Interest on any delayed payment of tax, where applicable.
• Non-compliance notices from the GST Department.

Further, GSTR-4 cannot be filed after the expiry of the statutory limitation period prescribed under the GST law.

Key Compliance Tips

• Reconcile turnover with all quarterly CMP-08 filings.
• Verify reverse charge transactions before filing.
• Ensure all tax liabilities have been discharged.
• File the return well before the due date to avoid last-minute portal issues.

Conclusion

GSTR-4 is an important annual compliance requirement for composition taxpayers. Timely filing ensures continued compliance under the GST law and helps avoid unnecessary interest, late fees, and notices from the tax authorities.

Sources: Section 39 of the CGST Act, 2017; Rule 62 of the CGST Rules, 2017; CGST Notification No. 12/2024-Central Tax dated 10 July 2024 (extending the due date for GSTR-4 to 30 June from FY 2024-25 onwards).

For expert guidance on this topic, contact your tax Consultant.