GSTR-4 Filing Services for Composition Taxpayers | Savlana Init

GST Compliance · Composition Annual Return

GSTR-4 Filing — Composition Return. Correctly Filed.

GSTR-4 is the annual return for GST Composition Scheme taxpayers — we file your annual return reconciling four quarters of CMP-08 payments with your turnover and inward supply details.

Form GSTR-4 is the annual return for taxpayers registered under the GST Composition Scheme under Section 10 of the CGST Act. It replaced the earlier quarterly GSTR-4 from FY 2019-20 onwards — composition taxpayers now file quarterly CMP-08 self-assessed challans for tax payment during the year and a single annual GSTR-4 at year end. GSTR-4 is due by April 30 following the end of the financial year (e.g., GSTR-4 for FY 2024-25 is due by April 30, 2025).

GSTR-4 consolidates the full year's composition tax liability — covering all four quarters — and requires the composition dealer to report total aggregate turnover, the turnover on which tax is payable (taxable turnover), inward supplies received from registered dealers (for RCM purposes), inward supplies from unregistered dealers, tax paid through CMP-08 challans, and any additional tax payable after reconciliation. The auto-populated sections of GSTR-4 draw from CMP-08 data and GSTR-2B, but the taxpayer must verify and complete the return.

A critical compliance point for composition dealers is that they are liable to pay GST under the Reverse Charge Mechanism on certain purchases — notably from unregistered suppliers, legal services, and GTA services. This RCM liability must be paid as a regular taxpayer (through GSTR-3B and Form GST CMP-05) and cannot be discharged through the composition levy. We handle both the quarterly CMP-08 filing and the annual GSTR-4, and advise on any RCM obligations that apply to the composition dealer's purchases.

Our GSTR-4 Filing Services

CMP-08 Quarterly Challan Filing

Quarterly filing of Form CMP-08 — the self-assessed tax challan for composition dealers — with turnover-based tax computation for each quarter.

GSTR-4 Annual Return Filing

Preparation and filing of annual Form GSTR-4 — consolidating four quarters of CMP-08 data, turnover figures, and inward supply details.

Turnover Reconciliation for GSTR-4

Reconciliation of aggregate turnover as declared across CMP-08 challans with the actual annual turnover from books of accounts.

Inward Supply Details (Table 4 & 5)

Compilation of inward supply details — purchases from registered dealers (auto-populated from GSTR-2B) and purchases from unregistered dealers — for Tables 4 and 5 of GSTR-4.

RCM Liability Advisory for Composition Dealers

Identification of RCM-liable purchases by the composition dealer — GTA, legal services, unregistered supplier transactions — and advisory on separate RCM payment obligations.

Additional Tax Payment (DRC-03)

Computation and payment of any additional composition tax payable after GSTR-4 reconciliation — over and above CMP-08 payments — through Form DRC-03.

Late GSTR-4 Filing

Filing of overdue GSTR-4 returns with late fee computation and advisory on applicable amnesty notifications for composition taxpayers.

Composition Scheme Compliance Advisory

Annual review of whether the composition scheme remains beneficial — turnover tracking relative to ₹1.5 crore limit and advisory on timely switch-back to regular scheme.

Our Process

Annual Turnover Compilation

Total aggregate turnover for the financial year is compiled from books of accounts and reconciled with the four CMP-08 challans filed during the year.

Inward Supply Data Collection

Purchase details — from registered and unregistered dealers — are compiled for reporting in Tables 4 and 5 of GSTR-4 with GSTR-2B cross-reference.

RCM Liability Check

Purchases subject to reverse charge are identified and any unpaid RCM liability is computed — separate from the composition levy.

GSTR-4 Preparation

Form GSTR-4 is prepared with reconciled turnover, inward supply details, CMP-08 tax paid, and any additional tax payable — verified before submission.

Filing by April 30 Deadline

GSTR-4 is filed by the April 30 due date and the acknowledgement is shared. Any additional tax is paid through DRC-03 before or at filing.

Why It Matters

✓CMP-08 filed every quarter — no missed composition tax payments

✓GSTR-4 filed by April 30 — late fee of ₹200/day avoided

✓Turnover reconciled — no mismatch between CMP-08 and GSTR-4

✓RCM obligations on purchases identified — no inadvertent default

✓Auto-populated GSTR-2B data verified before inward supply reporting

✓Additional tax computed and paid before GSTR-4 is submitted

✓Annual check on ₹1.5 crore turnover limit — timely scheme exit

✓Prior year overdue GSTR-4 returns cleared with amnesty advisory

Frequently Asked Questions

GSTR-4 is the annual return for GST Composition Scheme taxpayers. It must be filed by all taxpayers registered under the composition scheme — manufacturers, traders in goods, and restaurant owners (not serving alcohol) who have opted for the scheme under Section 10 of the CGST Act. It is due by April 30 of the year following the financial year to which it relates.

CMP-08 is the quarterly self-assessed challan through which a composition dealer pays composition tax on their quarterly turnover. It is filed and paid by the 18th of the month after the quarter end. GSTR-4 is the annual return that consolidates all four CMP-08 quarters, reports inward supply details, and reconciles the total annual tax liability. CMP-08 is a payment mechanism; GSTR-4 is the annual compliance return.

The late fee for GSTR-4 is ₹200 per day (₹100 CGST + ₹100 SGST) subject to a maximum of ₹5,000. Periodic amnesty notifications have waived or reduced late fees for long-overdue GSTR-4 returns — taxpayers with prior year defaults should check the latest notification before filing.

No. A composition dealer cannot claim any input tax credit — neither on inputs, input services, nor capital goods. This is the principal trade-off of the composition scheme: lower tax rate and simplified compliance in exchange for no ITC entitlement. The composition dealer absorbs the GST paid on purchases as a cost.

Composition dealers are liable to pay GST under the Reverse Charge Mechanism on purchases from unregistered suppliers (for notified goods and services), on GTA services, and on legal/advocate services, among other notified categories. This RCM liability cannot be paid through the composition levy — it must be paid separately through a regular taxpayer mechanism (Form GST CMP-05 or separate GSTR-3B-type payment). RCM paid by a composition dealer cannot be claimed as ITC.

Yes. Table 4 of GSTR-4 requires composition dealers to report inward supplies received from registered dealers during the year — auto-populated from GSTR-2B. Table 5 requires reporting of inward supplies from unregistered dealers. These tables are required for the department to cross-verify supply data and are an important compliance check in the composition return.

On the GST Composition Scheme? File your GSTR-4 by April 30.

We file your quarterly CMP-08 challans and annual GSTR-4 on time — reconciling turnover, inward supplies, and RCM obligations so your composition compliance is complete and accurate.