GSTR-4 Filing in India

Composition dealers under Section 10 of the CGST Act, 2017 enjoy a sharply reduced compliance footprint: flat 1 to 6 percent tax on turnover, quarterly Form CMP-08 by the 18th, and one annual return - Form GSTR-4 - by 30 June of the next financial year. That single annual return consolidates the entire year's outward supplies, inward supplies attracting reverse charge, tax payable and tax paid against the 4 quarterly CMP-08 returns. It is the year-end audit footprint for the composition cycle.

Notification 12/2024-CT dated 10 July 2024 was the most important administrative change for GSTR-4 since its introduction. From FY 2024-25 onwards, the due date is permanently shifted from 30 April to 30 June - a two-month extension recommended by the 53rd GST Council meeting, giving composition dealers and their CAs an extra 60 days to reconcile CMP-08 totals with books. Patron Accounting LLP files GSTR-4 end to end, recovering any negative liability and filing before the deadline. Annual fee starts at INR 1,499 per year.

Content is reviewed quarterly for accuracy.

Mandatory Filers

• Composition dealers under Section 10(1) of the CGST Act - manufacturers, traders, and restaurants (without alcoholic liquor) with aggregate turnover up to Rs 1.5 crore (Rs 75 lakh in 8 special category states)
• Service providers under Section 10(2A) of the CGST Act - aggregate turnover up to Rs 50 lakh
• Taxpayers who opted into composition for any part of the financial year (must file for the part period)
• Taxpayers whose composition was withdrawn or cancelled during the year (must file for the part period of composition)

Not Required to File GSTR-4

• Regular GST taxpayers (file GSTR-1 + GSTR-3B + GSTR-9 instead)
• Non-Resident Taxable Persons (file GSTR-5)
• OIDAR service providers (file GSTR-5A)
• Input Service Distributors (file GSTR-6)
• TDS deductors (file GSTR-7) and TCS collectors (file GSTR-8)

Nil Return

Even if a composition dealer had no outward supplies in the year (or only had supplies in part of the year), GSTR-4 must still be filed. For zero-tax-liability situations, the nil return draws a reduced late fee cap of Rs 500 (Rs 250 CGST + Rs 250 SGST) versus Rs 2,000 for taxable returns.

In-Year Data

• Form CMP-08 acknowledgement for each of the 4 quarters (Q1, Q2, Q3, Q4)
• Sales register (Bill of Supply records) for the entire FY
• Form GSTR-4A printout for inward supplies cross-verification
• Purchase invoices for inward supplies from registered and unregistered persons

RCM Documentation

• Section 9(3) notified supplies - GTA, advocate services, security services etc.
• Section 9(4) unregistered supplier supplies - capture and pay RCM
• Import of services - separate working with foreign supplier details and forex conversion

Reconciliation and Tax Payment

• Aggregate turnover working under Section 2(6) - confirm within the composition threshold
• Bank statement reconciliation against declared turnover
• DRC-03 challan for any tax shortfall identified during reconciliation
• Electronic cash ledger balance, Section 50 interest working, and Section 47 late fee if filing after 30 June

All fees and charges listed are indicative only and do not constitute a binding offer. Final amounts may vary depending on the volume of work and the complexity involved.

Professional service charges for drafting, filing, and representation are separate from the statutory fees. The exact fee depends on the complexity of the case, disputed amount, and number of hearings required. Contact us for a detailed quote.

Get a free GSTR-4 Filing consultation - Call +91 945 945 6700 or WhatsApp us. No-obligation assessment.

10,000+ Businesses | 4.9 Google Rating | 50,000+ Documents Processed | 15+ Years

Trusted by Hyundai, Asian Paints, Bridgestone, and 10,000+ other businesses across India, including 1,200+ composition scheme dealers across kirana, garment, restaurant, salon, and small manufacturer segments.

In FY 2025-26, Patron Accounting filed 1,140 GSTR-4 returns for composition dealers - 100 percent filed by the statutory 30 June deadline, 18 percent of clients recovered negative liability through Form RFD-01 (average recovery Rs 8,400 per client), and zero clients faced a Section 73 demand for under-disclosed RCM tax.

With offices in Pune, Mumbai, Delhi, and Gurugram, Patron Accounting serves composition dealers across India - both in-person and remotely. See our GST returns support in Mumbai for local assistance.

• GST Services - the complete GST services hub covering registration, returns, ITC, refunds, notices and audits.
• GST Returns - the umbrella service for regular taxpayers (GSTR-1 + GSTR-3B retainer).
• GST Annual Returns (GSTR-9 / 9C) - the parallel annual return for regular taxpayers.
• GST Refund - refund applications including negative liability via Form RFD-01.

For prospects evaluating the scheme, Patron also handles GST composition scheme registration (Form CMP-02 opt-in by 31 March), and the regular-taxpayer monthly returns GSTR-1 and GSTR-3B - run as companion engagements alongside this composition annual return.

Penalty exposure: late filing of GSTR-4 attracts late fee under Section 47 at Rs 50 per day combined (Rs 25 CGST + Rs 25 SGST), capped at Rs 2,000 for taxable returns (Rs 500 for nil). Unpaid tax, including RCM tax disclosed in Table 4, attracts interest under Section 50 at 18 percent per annum. Suppression detected under Section 61 scrutiny triggers a Section 73 demand (non-fraud, 10 percent) or Section 74 (fraud, equal to tax). Wrong composition opt-in where a Section 10(2) exclusion applies triggers a Section 10(5) demand at regular slab rates plus penalty, and from July 2025 a GSTR-4 not filed within 3 years of its due date cannot be filed at all.

Authoritative references: the GST Common Portal, CBIC - Section 10 of the CGST Act, 2017, and India Code (CGST Act 2017).

GSTR-4 has only one annual deadline - 30 June. Miss it and the late fee kicks in immediately, plus Section 50 interest on any unpaid RCM tax.

The 3-year cliff under the GSTN advisory dated 7 June 2025 means historical GSTR-4 cannot be filed indefinitely - FY 2022-23 GSTR-4 (originally due 30 April 2023) is now within 18 months of the cliff.

Negative liability sits idle in the cash ledger until Form RFD-01 is filed - some composition dealers have years of stuck refunds. The annual cycle deserves a single CA touch.

Form GSTR-4 under Section 10 of the CGST Act, 2017 read with Rule 62 of the CGST Rules, 2017 is the annual return for every composition dealer in India. From FY 2024-25 onwards, the due date is permanently 30 June of the next financial year per Notification 12/2024-Central Tax dated 10 July 2024 (extended from the earlier 30 April rule following the 53rd GST Council meeting).

The return consolidates the 4 quarterly CMP-08 self-assessed tax payments, captures inward supplies and reverse charge tax under Section 9(3) and 9(4), and reconciles annual tax payable versus tax paid. Excess CMP-08 over actual liability creates negative liability recoverable via Form GST RFD-01, and from July 2025 GSTR-4 cannot be filed beyond 3 years from its original due date.

Patron Accounting LLP, a CA and CS led firm with 15+ years of experience across Pune, Mumbai, Delhi, and Gurugram, files GSTR-4 end to end from INR 1,499 per year. Pair this with our GST Returns service for regular taxpayers, GST Annual Returns for GSTR-9, and GST Refund for negative-liability recovery.