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Good News for Taxpayers Under Composition Scheme – Due Date of GSTR-4 Extended

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The time limit to file GSTR-4 annual returns for the FY 2019-20 by the composition taxpayers has been extended till 31st October 2020 via the Central Board of Indirect Taxes and Customs (CBIC). 
The original deadline for filing the return was July 15, which was earlier extended till August 31. The Central Board of Indirect Taxes and Customs (CBIC) in a tweet said, “Last date GSTR 4 for FY 2019-20 extended to 31st October 2020″

Read more to understand GSTR-4

# What is GSTR-4 Annual Return

With effect from 1st April 2019, all Composition Taxpayers are required to file Form GSTR-4 Annual Return, on annual basis, for each financial year by 30th of April, following a financial year. 

# Who is required to file GSTR-4 Annual Return

GSTR-4 is the return that was to be filed by taxpayers who have opted for the Composition Scheme under GST on an annual basis. Until the FY 2018-19, the return was filed every quarter which got replaced by CMP-08. [updated as on 21st July 2020]

The facility to file GSTR-4 (Annual Return) is now available on the GST portal.
You can also Use the offline tool to prepare GSTR 4Click Here

# Who can file NIL Form GSTR-4 Annual Return

Nil Form GSTR-4 Annual Return can be filed for the financial year, if you have, for all applicable quarters of the year-

  • NOT made any outward supply 
  • NOT received any goods/services
  • Have NO other liability to report
  • Have filed all Form CMP-08 as Nil

# Who can opt for Composition Scheme

A your turnover is below Rs 1.5 crore* you can opt for Composition Scheme and pay taxes at a fixed rate on the turnover declared.

In the case of North-Eastern states and Himachal Pradesh, the limit is now Rs 75* lakh.

Some important Points:

  1. As per the CGST (Amendment) Act, 2018, a composition dealer can also supply services to an extent of ten percent of turnover, or Rs.5 lakhs, whichever is higher. This amendment will be applicable from the 1st of Feb, 2019. Further, GST Council proposed an increase to this limit for service providers in its 32nd meeting on 10th Jan 2019*.
  2. Turnover of all businesses registered with the same PAN should be taken into consideration to calculate turnover.
  3. If you are under composition scheme you are required to pay tax in a quarterly statement CMP- 08 by 18th of the month after the end of the quarter. You will use the Form CMP-08, which is a special statement-cum-challan to declare the details or summary of self-assessed tax payable for a given quarter. It also acts as a challan for making payment of tax.
  4. Also, a return in form GSTR-4 has to be filed annually by 30th April of next financial year from FY 2019-20 onwards.
  5. Also, note that a taxpayer registered under the composition scheme is not required to maintain detailed records.

# How can a taxpayer opt for Composition Scheme?

To opt for a composition scheme you has to file GST CMP-02 with the government. This can be done online by logging into the GST portal by following these steps. This intimation should be given at the beginning of every Financial Year by you to opt for the Composition Scheme.

# What are the advantages of the Composition Scheme?

The following are the advantages of registering under the composition scheme:

  • Lesser compliance (returns, maintaining books of record, issuance of invoices)
  • Limited tax liability
  • High liquidity as taxes are at a lower rate

# When is GSTR-4 due?

GSTR 4 has to be filed on an annual basis. The due date for filing Form GSTR-4 Annual Return is 30th of the month succeeding the financial year or as extended by Government, from time to time. Until the FY 2018-19, the due date was 18th of the month after the end of the quarter.

*Note: The time limit to file GSTR-4 annual returns for the FY 2019-20 by the composition dealers has been extended till 31st August 2020 via Central Board of Indirect Taxes and Customs (CBIC) notification.

# How to Revise GSTR-4?

There is no provision for revising GSTR-4 after filing on the GSTN Portal. Make sure that you thoroughly review your GSTR-4 before filing.

# Late Fees and Penalty

As per GST laws, the Late Fee is an amount charged for delay in filing GST returns. It can be referred to as an overdue fine.

1.) A penalty of Rs. 200 per day is levied if the GSTR-4 is not filed within the due date.
2.) The maximum late fee that can be charged cannot exceed Rs. 5,000.

# How it is different from Form GSTR-4 Quarterly Return

Please note that this Form GSTR-4 Annual Return is different from the Form GSTR-4 Quarterly Return, which was required to be filed on a quarterly basis. 

  • Form GSTR-4 Quarterly Return is applicable up to the tax period ending on 31st March 2019, for composition taxpayers.
  • For tax periods till the quarter ending March 2019, Composition Taxpayers are required to file Form GSTR-4 Quarterly Return (which is also available on the GST portal), on a quarterly basis. Whereas from 01.04.2019, composition taxpayers are required to file Form GST CMP 08, on a quarterly basis.

# Where to FInd GSTR – 4 in Vyapar

Go to Reports > GST Reports > GSTR-4 Report

Have Vyapar App?

How to use it?

On the “GSTR – 4 Report” screen, select the Dates or Time Duration you would like to see the details on

Shows the Summary of all inward supplies  
You can export these details as PDF or XLS format and share it with people who matter.

# How to File Form GSTR-4 Annual return

Steps to file GSTR – 4 Online

Step 1- Logon to your dashboard on GST portal

Step 2- Click on Services > Returns > Annual Return > Select FY > Search > GSTR 4 > FILE THE RETURN.

After successfully filing, ARN will be generated and intimated through email and SMS

Currently, only the online filing has been enabled on the portal. Shortly, an offline tool to file Form GSTR-4 Annual Return will also be made available.


You may want to read these:
How to Apply for GST Registration Online in India?
Legal Requirements for Business Registration in India
9 Types of Small Business Insurance and What it Covers
No eWay Bill if you haven’t filed your GSTR-3B


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