Taxpayers registered under the GST Composition Scheme enjoy simplified compliance requirements compared to regular taxpayers. One of the important compliance obligations for composition dealers is filing GSTR-4, which is an annual return.

Timely filing of GSTR-4 helps businesses maintain compliance, avoid penalties, and keep their GST records updated. Whether you are a trader, manufacturer, or restaurant operating under the composition scheme, understanding GSTR-4 is essential.

What is GSTR-4?

GSTR-4 is an annual GST return filed by taxpayers registered under the Composition Scheme.
It contains details relating to:

• Turnover during the financial year.
• Tax liability based on applicable GST rates.
• Inward supplies.
• Tax paid through CMP-08.
• TDS and TCS credits.
• Refund claims, if any.

Purpose of GSTR-4

The primary objective of GSTR-4 is to provide an annual summary of transactions and taxes paid by composition taxpayers to maintain the integrity of the overall GST structure in India.

Who Needs to File GSTR-4?

Composition taxpayers registered under Section 10 of the CGST Act are required to file GSTR-4 annually.

Who is Eligible to File GSTR-4?

The following taxpayers are generally required to file GSTR-4.

Composition Dealers
Businesses opting for the Composition Scheme are required to furnish GSTR-4 annually.

Example: A grocery shop with turnover below the prescribed threshold operating under the composition scheme must file GSTR-4.

Traders
Small trading businesses registered under the composition scheme are eligible.
Examples: Kirana stores, Wholesale traders, Retail shops.

Manufacturers
Manufacturers eligible under the composition scheme are also required to file GSTR-4.

Example: A furniture manufacturing unit under the composition scheme must furnish GSTR-4 annually.

Restaurants
Restaurants that do not serve alcohol and have opted for composition taxation are required to file GSTR-4.

Small Businesses
Small taxpayers seeking simplified compliance under GST are generally covered.

Who is Exempt from Filing GSTR-4?

The following persons are not required to file GSTR-4:

• Regular Taxpayers: Regular taxpayers file GSTR-1, GSTR-3B, and GSTR-9 instead of GSTR-4.
• Input Service Distributors: ISDs file GSTR-6.
• Non-Resident Taxable Persons: These taxpayers must proceed with GSTR-5 return filing.
• E-Commerce Operators: E-commerce operators liable to collect TCS file GSTR-8.
• Taxpayers Who Have Not Opted for Composition Scheme: Businesses under the normal GST scheme are not eligible for GSTR-4.

Due Date for Filing GSTR-4 in 2026

GSTR-4 is filed annually.

Annual Due Date

Generally, GSTR-4 for a financial year is due on 30th April of the following financial year, subject to notifications and extensions issued by the government.

Importance of Timely Filing

Filing within the due date helps:

• Avoid late fees.
• Maintain compliance.
• Prevent notices.
• Keep records updated.

Information Required for GSTR-4 Filing

Composition taxpayers should keep the following details ready.

• GSTIN: A valid GST registration number is mandatory.
• Turnover Details: Provide aggregate turnover, taxable turnover, and exempt turnover.
• Tax Liability: Details relating to CGST, SGST, and IGST must be reported accurately.
• Inward Supplies: Information relating to purchases from registered persons, reverse charge supplies, and import transactions, if applicable.
• Tax Payments: Details of tax paid through CMP-08 during the financial year should be available. You can use a GST amount calculator to verify your totals.
• TDS and TCS Credits: Tax deducted or collected at source should be reported wherever applicable.
• Refund Claims: Any refund adjustments should also be considered.

Documents Required for GSTR-4 Filing

Maintaining proper records simplifies annual return filing.

Checklist of Documents

• GST Registration Certificate: To verify GSTIN and taxpayer details.
• CMP-08 Details: Quarterly tax payment information for the financial year.
• Sales Register: Details of turnover and outward supplies, mapped to the correct GST unit quantity code (UQC) if needed.
• Purchase Register: Information regarding inward supplies.
• Tax Payment Challans: Proof of taxes paid during the year.
• Bank Statements: Useful for reconciliation purposes.
• Books of Accounts: Maintain cash book, ledger, purchase records, and sales records.
• TDS and TCS Statements: If applicable, keep relevant details ready.
• Previous GST Returns: These help verify information and maintain consistency.

Practical Example

Mr. Sharma runs a grocery store in Jaipur and has opted for the GST Composition Scheme.
During FY 2025-26:

• Turnover = ₹60 lakh.
• Tax paid through CMP-08 quarterly.
• Business records maintained properly.

At the end of the year, he files GSTR-4 by reporting turnover and taxes already paid. This helps him remain compliant and avoid penalties.

Understanding eligibility, due dates, and required documents makes GSTR-4 filing easier for composition taxpayers. Maintaining proper records throughout the year can significantly simplify annual return compliance.

Step-by-Step Process to File GSTR-4 Online

Filing GSTR-4 has become easier with the GST portal. Follow this standard GST procedure to file your annual return.

Step 1: Log in to the GST Portal

Visit the GST portal and sign in using your GSTIN, Username, and Password.

Step 2: Navigate to Returns Dashboard

Go to: Services → Returns → Returns Dashboard. Select Financial Year and Return Filing Period, then choose GSTR-4 Annual Return.

Step 3: Enter Annual Turnover Details

Provide Aggregate turnover, Taxable turnover, and Exempt supplies. Ensure figures match books of accounts.

Step 4: Report Inward Supplies

Include Purchases from registered suppliers, Reverse charge transactions, and Import details, if applicable.

Step 5: Verify Tax Paid Through CMP-08

The system automatically fetches tax payments made during the year. Review CGST, SGST, and IGST.

Step 6: Declare TDS and TCS Credits

If applicable, enter TDS credits and TCS credits.

Step 7: Preview the Return

Review all information carefully. Verify Turnover, Tax liability, and Tax payments.

Step 8: File Using EVC or DSC

Submit the return through Electronic Verification Code (EVC) or Digital Signature Certificate (DSC). Once filed successfully, an ARN (Acknowledgment Reference Number) is generated.

GSTR-4 Format and Tables Explained

Understanding the format of GSTR-4 helps composition taxpayers avoid errors.

• Table 1 – GSTIN: Contains GSTIN, Legal name, and Trade name.
• Table 2 – Inward Supplies: Details relating to purchases received from registered suppliers and reverse charge transactions.
• Table 3 – Summary of Self-Assessed Liability: Includes Taxable turnover, Tax liability, and Tax already paid through CMP-08.
• Table 4 – TDS and TCS Credit Received: Shows TDS deducted and TCS collected by e-commerce operators.
• Table 5 – Refund Claimed: Details relating to excess tax payments and refund adjustments.
• Table 6 – Interest and Late Fees: Contains Interest payable and Late fee liability.

Example of GSTR-4 Filing

Suppose ABC Traders opted for the Composition Scheme during FY 2025-26:

These details are reported while filing GSTR-4.

Late Fees and Penalty for Delayed GSTR-4 Filing

Failure to file GSTR-4 within the prescribed time may result in additional costs.

Late Fee

The late fee for delayed filing is ₹50 per day (₹25 CGST + ₹25 SGST). For Nil returns, it is ₹20 per day (₹10 CGST + ₹10 SGST). The maximum late fee is generally subject to statutory limits and government notifications.

Interest Liability

Delay in payment of tax may attract interest at applicable rates under GST provisions.

Consequences of Non-Compliance

Late filing may result in late fees, interest liability, GST notices, compliance issues, and difficulty in obtaining loans and tenders. Ignoring notices can lead to a formal GST demand.

Benefits of Filing GSTR-4 on Time

• Avoid Penalties: Filing within the due date helps taxpayers avoid unnecessary late fees and interest.
• Maintain GST Compliance: Regular compliance improves the business's credibility and reduces the risk of notices.
• Better Financial Records: Annual return filing helps maintain accurate books of accounts, proper tax records, and financial discipline.
• Smooth Business Operations: Timely compliance ensures easier audits, better vendor relationships, and improved financial planning.
• Peace of Mind: Businesses can focus on operations without worrying about pending GST obligations.

Common Mistakes to Avoid While Filing GSTR-4

Many composition taxpayers make avoidable mistakes during annual return filing.

• Incorrect Turnover Reporting: Mismatch between books and turnover declared in GSTR-4 can attract notices. Solution: Always reconcile turnover before filing.
• Missing Tax Liability: Failure to include all taxable supplies may result in additional demand.
• Delayed Filing: Late filing leads to penalties and compliance issues.
• Wrong GSTIN Details: Incorrect GSTIN or taxpayer information may create processing issues.
• Failure to Reconcile CMP-08 Payments: Tax paid during the year should match annual return figures.
• Ignoring TDS and TCS Credits: Credits available should be properly reported to avoid loss of benefits.
• Depending Entirely on Accounting Software: Manual review of records is always recommended before filing.

Latest GSTR-4 Updates in 2026

GST authorities continue to emphasize digital compliance and accurate reporting. To ensure your business stays secure against cyber threats, Read this blog.

Increased Compliance Monitoring

Authorities are using advanced analytics to verify turnover, tax payments, and composition scheme eligibility.

AI-Based Scrutiny

Automated systems compare GSTR-4, CMP-08, E-way bills, and books of accounts. Any discrepancies may trigger scrutiny.

Focus on Timely Filing

Composition taxpayers are encouraged to maintain records throughout the year and avoid last-minute filing.

Improved Online Filing Experience

The GST portal continues to enhance user experience with simplified filing procedures and better validation checks.

Proper filing of GSTR-4 not only fulfills statutory requirements but also helps businesses maintain financial discipline and avoid unnecessary litigation. Composition taxpayers should maintain accurate records and reconcile their data before submitting the annual return.

Need Help with GSTR-4 Return Filing?

Filing GSTR-4 correctly and on time helps composition taxpayers avoid penalties and maintain smooth GST compliance.

Our GSTR-4 Filing Services Include

• GSTR-4 Annual Return Filing
• CMP-08 Reconciliation
• Turnover Verification
• Tax Liability Computation
• GST Notice Assistance
• GST Audit Support
• Composition Scheme Advisory
• Annual Compliance Support

Why Choose Us?

• Experienced Chartered Accountants
• Accurate Return Preparation
• Timely Filing Support
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• Transparent and Hassle-Free Process

Get professional support for GSTR-4 filing and ensure seamless GST compliance for your business. Contact us today.

Conclusion

GSTR-4 is an important annual compliance requirement for taxpayers registered under the GST Composition Scheme. Timely filing ensures proper reporting of turnover and taxes paid while helping businesses avoid penalties and notices.

With increasing digital scrutiny and data analytics by GST authorities in 2026, composition taxpayers should maintain accurate records and reconcile their data regularly. Proper compliance not only reduces litigation risks but also strengthens financial discipline and business credibility.

Frequently Asked Questions (FAQs)

What is GSTR-4?

GSTR-4 is an annual return filed by taxpayers registered under the GST Composition Scheme. It contains turnover details, tax liability, and taxes paid during the financial year.

Who is required to file GSTR-4?

Composition taxpayers such as traders, manufacturers, and restaurants registered under Section 10 of the CGST Act are required to file GSTR-4 annually.

What is the due date for GSTR-4?

Generally, GSTR-4 must be filed by 30th April following the end of the financial year, subject to government notifications and extensions.

Is GSTR-4 an annual return?

Yes. GSTR-4 is an annual return applicable to composition taxpayers.

Can GSTR-4 be revised?

No. Once filed, GSTR-4 cannot be revised. Any corrections must be addressed according to applicable GST provisions.

What is the penalty for late filing of GSTR-4?

Late filing attracts ₹50 per day (₹25 CGST + ₹25 SGST) or ₹20 per day for Nil returns subject to the maximum limits prescribed under GST law.

How do I file GSTR-4 online?

GSTR-4 can be filed through the GST portal by logging in, selecting the return period, entering turnover details, verifying tax payments, and submitting the return using EVC or DSC.

Which documents are required for GSTR-4?

Generally, taxpayers should maintain GSTIN details, CMP-08 records, Sales register, Purchase register, Tax payment challans, Books of accounts, and Bank statements.

Who cannot file GSTR-4?

Regular taxpayers, ISDs, Non-Resident Taxable Persons, and taxpayers not registered under the Composition Scheme cannot file GSTR-4.

Is GSTR-4 mandatory for composition dealers?

Yes. Composition taxpayers are required to file GSTR-4 annually.

What happens if GSTR-4 is not filed?

Failure to file GSTR-4 may result in late fees, interest liability, GST notices, and compliance issues.

Can GSTR-4 be filed after the due date?

Yes. However, late fees and interest may become applicable.