GST is a revolutionary tax reform that has brought a positive transformation in the Indian economy. It has simplified the taxation system and eliminated the cascading effect of taxes. However, it has also increased the compliance burden for small taxpayers. To ease this burden, the government has introduced GSTR-4, a simplified return filing form for small taxpayers.
GSTR-4 is a quarterly return that needs to be filed by small taxpayers. The form has four parts:
GSTR-4 is designed specifically for small taxpayers. The eligibility criteria for filing GSTR-4 are as follows:
The following are the rules for filing GSTR-4:
If the taxpayer fails to file GSTR-4 within the due date, he/she will be liable to pay a late fee of Rs. 200 per day (Rs. 100 as late fee under CGST and Rs. 100 as late fee under SGST) until the return is filed. The maximum late fee that can be charged is Rs. 5,000 (Rs. 2,500 as late fee under CGST and Rs. 2,500 as late fee under SGST).
In addition to the late fee, the taxpayer may also be liable to pay interest on the tax payable. The interest rate is currently 18% per annum.
GSTR-4 is a simplified return filing form that is designed specifically for small taxpayers. It has eased the compliance burden for small taxpayers and has made it easier for them to comply with the GST laws. However, it is important for small taxpayers to ensure that they file GSTR-4 within the due date to avoid any late fees or penalties.
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