GSTR-4 Filing for Composition Dealers: A Complete Guide

If you're registered under the GST Composition Scheme, GSTR-4 is your annual return form. Unlike regular taxpayers who file monthly or quarterly returns, composition dealers only need to file GSTR-4 once a year. However, it’s crucial to get the filing right to maintain compliance and avoid penalties. This guide explains the entire GSTR-4 filing process, who needs to file, the due dates, and mistakes to avoid—especially relevant for small businesses under the simplified GST regime.

GSTR-4 is an annual return that must be filed by taxpayers who have opted for the Composition Scheme under GST. This form includes:

• Summary of outward supplies
• Inward supplies (auto-populated from GSTR-4A)
• Tax liability
• Tax paid and any late fees or interest

From FY 2019–20 onwards, GSTR-4 is to be filed annually instead of quarterly.

• Mandatory compliance for composition dealers.
• Ensures correct declaration of tax liability and turnover.
• Helps avoid late filing penalties and interest.
• Ensures transparency with GST departments.

Step 1: Log in to GST Portal

Visit www.gst.gov.in and log in using your credentials.

Step 2: Navigate to Returns Dashboard

Select the appropriate financial year and click on “Annual Return GSTR-4.”

Step 3: Review Auto-Populated Data

Inward supply details will be pre-filled from GSTR-4A. Verify and confirm these details.

Step 4: Enter Outward Supply Details

Manually fill in turnover from outward supplies (taxable and exempted), along with tax payable under the Composition Scheme.

Step 5: Provide Tax and Interest Details

Mention tax paid during the financial year via Form CMP-08 and include any interest or late fees.

Step 6: Preview the Return

Click on “Preview Draft GSTR-4” to review the form before submission.

Step 7: Submit and File

After verifying all entries, click “Submit” and then “File GSTR-4” using DSC or EVC.

After successful filing, download the ARN and acknowledgment for your records.

• Failing to reconcile GSTR-4A with your books.
• Missing deadlines leading to late fees.
• Incorrect reporting of turnover or tax liability.
• Not paying taxes via CMP-08 before filing GSTR-4.
• Filing without verifying the auto-populated data.

GSTR-4 filing is an essential annual obligation for all composition dealers under GST. Although it’s only required once a year, accuracy is key to maintaining compliance. By carefully reconciling data, verifying tax payments, and following this step-by-step guide, you can file your GSTR-4 smoothly and avoid costly penalties. Small businesses can stay stress-free by filing well before the deadline and keeping their GST records clean.

Q1. Who must file GSTR-4?
All taxpayers registered under the Composition Scheme must file GSTR-4 annually.

Q2. What is the due date for GSTR-4?
April 30 of the financial year following the return period (e.g., FY 2024–25 is due by April 30, 2025).

Q3. Is GSTR-4 different from CMP-08?
Yes, CMP-08 is a quarterly statement for tax payment, while GSTR-4 is the annual return.

Q4. Can GSTR-4 be revised?
No, once filed, GSTR-4 cannot be revised.

Q5. What if I don’t file GSTR-4 on time?
Late filing attracts a late fee of ₹50 per day (₹20/day if Nil return), subject to a maximum cap.