What Is GSTR-4?

Understanding GSTR-4 for GST Filing

GSTR-4 is a quarterly return that certain taxpayers under the Goods and Services Tax (GST) regime must file. 

Key Features of GSTR-4:

1. For Composition Scheme Taxpayers:

GSTR-4 is applicable only to taxpayers who have opted for the Composition Scheme under GST. 

This scheme is intended for small taxpayers with an annual turnover up to ?1.5 crores.

2. Quarterly Filing:

Unlike regular taxpayers who file monthly returns, taxpayers under the Composition Scheme file GSTR-4 on a quarterly basis.

The due date for filing GSTR-4 is typically the 18th of the month following the quarter.

3. Summary Return:

GSTR-4 is a summary return where taxpayers report their summarized details of outward supplies, tax payable, and tax paid during the quarter.

4. Simplified Format:

Similar to GSTR-3B, GSTR-4 has a simplified format compared to other GST returns, requiring fewer details to be filled in.

5. No Input Tax Credit (ITC) Adjustment:

Taxpayers under the Composition Scheme are not eligible to claim input tax credit. 

Therefore, GSTR-4 does not include any provisions for reporting or adjusting ITC.

6. Flat Tax Rate:

Taxpayers under the Composition Scheme pay tax at a flat rate based on their turnover, without the need to maintain detailed records of input and output tax.

7. Declaration of Outward Supplies:

Taxpayers declare their outward supplies and the tax payable on those supplies in GSTR-4.

8. No Provision for Invoice-level Details:

Similar to GSTR-3B, GSTR-4 does not require taxpayers to provide invoice-level details of their outward supplies.

Key Sections in GSTR-4:

Part A: Basic details such as GSTIN, legal name, and trade name (if any) of the taxpayer.

Part B: Details of outward supplies, including supplies made to registered and unregistered persons.

Part C: Tax payable and paid, including details of tax liabilities for the quarter.

Benefits of Filing GSTR-4:

Simplified Compliance: GSTR-4 reduces the compliance burden for small taxpayers by providing a simplified return filing process.

Quarterly Filing: Allows taxpayers to file returns on a quarterly basis, reducing the frequency of compliance requirements.

Flat Tax Rate: Taxpayers under the Composition Scheme benefit from a flat tax rate without the need for complex tax calculations.