Introduction:
If you’re a taxpayer under the GST Composition Scheme, your annual compliance doesn’t end with quarterly CMP-08 filings. You must also file the GSTR-4 Annual Return—a crucial summary of your financial year’s activity. Failing to file GSTR-4 may lead to hefty penalties, even if you had no business activity. Whether you’re running a small manufacturing unit, a restaurant, or a trading shop filing GSTR4 on time ensures that your compliance status remains intact and your GST registration stays active.
Who Should File GSTR-4 for FY 2024–25?
You must file GSTR-4 if:
- You were registered under the Composition Scheme at any time during FY 2024–25.
- You switched from Composition to Regular Scheme during the year.
- You cancelled your GSTIN mid-year but had active Composition status for any period.
- You had no sales, purchases, or business activity during the year (still mandatory).
GSTR-4 Due Date for FY 2024–25:
| Return Type | Period | Due Date |
|---|---|---|
| GSTR-4 (Annual Return) | 1 April 2024 – 31 March 2025 | 30 June 2025 |
Documents Required for GSTR-4 Filing:
1. Outward Supply Records
- Bills of supply raised during FY 2024–25.
- Credit/debit notes issued to customers.
2. Inward Supply Records
- Purchase invoices from GST-registered suppliers.
- Purchase invoices from unregistered suppliers.
- Self-invoices under RCM.
Under the Composition Scheme, you cannot claim Input Tax Credit (ITC) but must pay GST under Reverse Charge Mechanism (RCM) on certain purchases and services.
| RCM Scenario | Example |
|---|---|
| Purchase from an unregistered Goods Transport Agency (GTA) | Hiring a local tempo or truck service for delivery from a transporter who is not registered under GST. |
| Rent of commercial property from an unregistered person | Renting a warehouse or office from an individual landlord who does not have a GST registration. |
3. Tax Paid Records
- GST payment challans (if any tax liability exists).
- Summary of taxes paid under reverse charge (RCM) and any voluntary payments.
4. Business Summary
- Turnover details (auto-populated but must verify).
- Opening and closing stock as on 1 April 2024 and 31 March 2025.
- Amendments (if applicable) want to update in GST Portal.
Penalties for Late Filing of GSTR-4:
The government imposes strict penalties for non-filing or late filing:
| Scenario | Late Fee (per day) | Maximum Cap |
|---|---|---|
| GSTR-4 with turnover | ₹200 (₹100 CGST + ₹100 SGST) | ₹5,000 |
| Nil GSTR-4 (no turnover) | ₹50 (₹25 CGST + ₹25 SGST) | ₹500 |
In addition to the late fee, you must pay interest @ 18% per annum on any unpaid tax under RCM or under-reported liability..
Frequently Asked Questions (FAQs):
Q1. Can I revise GSTR-4 after filing it?
No. Once filed, you cannot revise GSTR-4. Review all entries before final submission.
Q2. Do I need to file GSTR-4 if I had no sales or purchases?
Yes. You must still file a Nil GSTR-4.
Q3. What happens if I forget to file GSTR-4?
The GST system imposes a late fee and interest. Continued non-compliance may also lead to cancellation of registration.
Conclusion:
Filing GSTR-4 is not optional—even if you had zero turnover. Staying compliant under the Composition Scheme doesn’t require monthly returns, but it does demand one accurate annual return. Timely GSTR-4 filing helps avoid penalties, maintains a clean GST history, and ensures that your business remains legally active. Start preparing your data in April and file the return well before the deadline. After all, compliance today protects your business tomorrow.
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This article is only a knowledge-sharing initiative and is based on the Relevant Provisions as applicable and as per the information existing at the time of the preparation. In no event, RMPS & Co. or the Author or any other persons be liable for any direct and indirect result from this Article or any inadvertent omission of the provisions, update, etc if any.
Published on: May 31, 2025