GSTR-4: Return Filing, Format, Eligibility Rules

Introduction

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.

Format of GSTR-4

GSTR-4 is a quarterly return that needs to be filed by small taxpayers. The form has four parts:

Part-A: General details of the taxpayer such as name, GSTIN, and financial year.
Part-B: Details of outward supplies made by the taxpayer. This includes details of invoices issued and the corresponding GST paid.
Part-C: Details of inward supplies received by the taxpayer, including details of the corresponding GST paid.
Part-D: Details of tax paid and payable.

Eligibility Criteria for GSTR-4

GSTR-4 is designed specifically for small taxpayers. The eligibility criteria for filing GSTR-4 are as follows:

The taxpayer should be registered under the composition scheme.
The taxpayer's turnover should not exceed Rs. 1.5 crore in the previous year.
The taxpayer should not be making any supplies through an e-commerce operator.
The taxpayer should not be making any supplies of goods or services that are exempt from GST.

Rules for Filing GSTR-4

The following are the rules for filing GSTR-4:

GSTR-4 needs to be filed on a quarterly basis.
The due date for filing GSTR-4 is 18th of the month following the end of the quarter. For example, the due date for filing GSTR-4 for the first quarter (April to June) is 18th July.
The taxpayer needs to file GSTR-4 electronically through the GST portal.
The taxpayer is not required to provide invoice-level details in GSTR-4. Aggregate level details are sufficient.

Late Fees and Penalty

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.

Conclusion

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.