The Goods and Services Tax Network (GSTN) has issued a crucial reminder for all taxpayers registered under the Composition Scheme. The due date to file the annual return in Form GSTR-4 for the Financial Year 2024-25 is 30th June 2025. This annual compliance is mandatory for all businesses that have opted for the Composition Scheme, even for a part of the financial year.
This deadline marks a significant change, as the due date has been officially extended from April 30th to June 30th of the year succeeding the financial year, starting from FY 2024-25. This extension provides taxpayers with additional time to compile their financial data and file their returns accurately.
Understanding GSTR-4 and the Composition Scheme
The Composition Scheme under GST is a simplified compliance mechanism for small taxpayers. It allows eligible businesses to pay tax at a fixed percentage of their turnover and file returns on an annual basis, easing their compliance burden.
Form GSTR-4 is the annual return that consolidates the summary of outward supplies, inward supplies (purchases), tax paid, and other relevant details for the entire financial year. It is a comprehensive document that must be filed by anyone who has been registered as a composition dealer at any point during the financial year in question.
Who is Required to File GSTR-4?
Filing GSTR-4 is a mandatory requirement for all taxpayers who have opted for the Composition Scheme. This includes:
- Businesses that remained under the scheme for the entire financial year.
- Taxpayers who opted into the scheme during the year.
- Individuals who opted out of the scheme or had their GST registration cancelled mid-year but were under the composition levy for any period.
It is critical to note that filing a Nil return is also compulsory if there was no business activity (no sales or purchases) during the year.
Key Details Required for Filing GSTR-4
Before proceeding with the filing, taxpayers should have the following information ready:
- A summary of outward supplies made during the financial year.
- Details of all inward supplies (purchases) from registered and unregistered suppliers. This includes supplies that attract a reverse charge.
- Details of services imported, if any.
- Consolidated summary of the quarterly tax payments made through Form CMP-08.
- Tax, interest, and late fee liabilities and payments.
A prerequisite for filing GSTR-4 is that the taxpayer must have filed all their quarterly statements in Form GST CMP-08 for the relevant financial year.
Consequences of Missing the Deadline
Failure to file GSTR-4 by the due date of 30th June 2025 will attract penalties. The current penalty structure for late filing is as follows:
- A late fee of ₹50 per day of delay (₹25 CGST + ₹25 SGST).
- The maximum late fee is capped at ₹2,000 (₹1,000 CGST + ₹1,000 SGST).
- For a Nil return, the maximum late fee is restricted to ₹500 (₹250 CGST + ₹250 SGST).
In addition to the late fee, interest at the rate of 18% per annum will be applicable on any outstanding tax liability.
How to File Your Return
Taxpayers can file their GSTR-4 return online through the official GST Portal. The process involves logging in, navigating to the ‘Annual Return‘ section, and filling in the required details in the various tables of the form. The portal provides options to prepare the return online and also offers an offline utility for convenience.
Given the approaching deadline, all composition taxpayers are urged to gather their financial records and complete their GSTR-4 filing well in advance to avoid last-minute hassles and penalties.