GSTR-4 Filing Services

GSTR-4 is the annual return prescribed under Rule 62 of the CGST Rules read with Section 39 of the CGST Act, 2017, specifically for taxpayers registered under the Composition Scheme of Section 10 (regular composition) and the special composition option under Notification 02/2019 for small service providers. It is a consolidated, financial-year-level return in which composition dealers report their total outward supplies, inward supplies liable to reverse charge, inward supplies from regular taxpayers, and tax paid during the year through quarterly CMP-08 statements — essentially rounding off the composition dealer's GST year.

The composition scheme is designed for small businesses — manufacturers and traders with aggregate turnover up to ₹1.5 crore (₹75 lakh for special category states) and specified service providers up to ₹50 lakh — who pay GST at a low fixed rate (1%, 5%, or 6% depending on category) without availing input tax credit and issue a Bill of Supply instead of a Tax Invoice. Within this scheme, quarterly tax payment happens through Form CMP-08, while the annual declaration — with all the yearly totals and self-assessed information — happens through GSTR-4. Together, CMP-08 + GSTR-4 replace the regular GSTR-1 + GSTR-3B + GSTR-9 cycle for composition dealers.

We offer end-to-end GSTR-4 Filing Services for composition dealers — from quarterly CMP-08 filings, reconciliation of inward and outward supplies with books, correct classification of RCM liabilities, preparation of annual GSTR-4, timely filing on the GST portal with DSC / EVC authentication, handling of late fees and amnesty schemes, and support in transitioning in or out of the composition scheme — so that small businesses stay fully GST-compliant without getting entangled in the complexity of the regular return framework.

30 Apr

Annual GSTR-4 due date

Sec 10

Composition scheme provision

Rule 62

GSTR-4 governing rule

1% / 5% / 6%

Composition tax rates

Laws & Frameworks We Work Under

CGST Act – Sec 10 (Composition)

CGST Act – Sec 39

CGST Rules – Rule 62

Form GSTR-4 (Annual)

Form CMP-08 (Quarterly)

Form CMP-02 (Opt In)

Notification 02/2019-CT(R)

Section 47 – Late Fees

Two Categories of Composition Dealers Who File GSTR-4

Sec 10(1)

Traders & Manufacturers

Composition scheme for traders, manufacturers, and restaurants with aggregate turnover up to ₹1.5 crore.

Turnover threshold ₹1.5 crore
₹75 lakh in special states
Manufacturer rate: 1% (0.5+0.5)
Trader rate: 1% (0.5+0.5)
Restaurant rate: 5% (2.5+2.5)
No ITC / tax invoice

Sec 10(2A)

Service Providers (Notif. 02/2019)

Special composition scheme for service providers and mixed suppliers up to ₹50 lakh turnover.

Turnover threshold ₹50 lakh
For services / mixed suppliers
Rate: 6% (3+3)
Bill of Supply mandatory
No inter-state outward supply
No e-commerce sales allowed

How CMP-08 & GSTR-4 Work Together

Quarterly

Form CMP-08 (Quarterly Payment)

Self-assessed quarterly statement of tax payable by composition dealers, with tax paid through cash ledger.

Filed every quarter
Due on 18th of next month
Self-assessed turnover & tax
Payment through PMT-06
Covers outward + RCM
Feeds into annual GSTR-4

Annual

Form GSTR-4 (Annual Return)

Annual consolidated return summarising the year's outward supplies, inward supplies, and tax paid.

Filed once per financial year
Due on 30 April of next FY
Consolidation of CMP-08 data
Inward supplies from suppliers
RCM-wise & rate-wise split
Tax reconciliation at year-end

What GSTR-4 Actually Reports

Table 4A

Inward from Registered

Inward supplies received from GST-registered suppliers (other than RCM), auto-populated from GSTR-1.

B2B In Regular

Table 4B

Inward Under RCM

Inward supplies from registered suppliers on which the composition dealer pays tax under reverse charge.

RCM Registered

Table 4C

Unregistered RCM

Inward supplies from unregistered persons attracting RCM under specific notifications.

Sec 9(4) Unregistered

Table 4D

Import of Services

Import of services by the composition dealer attracting IGST under reverse charge mechanism.

Import IGST RCM

Table 6

Outward Supplies

Rate-wise summary of outward supplies, tax on outward supplies, and tax on RCM liabilities.

Outward Rate-wise

Table 7-9

Tax Paid & Reconciliation

Tax, interest, late fee paid through CMP-08 / DRC-03 and reconciliation of any additional liability.

CMP-08 DRC-03

What Our GSTR-4 Engagement Covers

Quarterly

Quarterly CMP-08 Support

Quarterly self-assessment of turnover, tax computation, and CMP-08 filing with tax payment.

Turnover compilation
Rate application (1 / 5 / 6%)
RCM liability computation
PMT-06 challan generation
CMP-08 filing on portal
Acknowledgement tracking

Annual

Annual GSTR-4 Preparation

Consolidation of all four quarters' data, reconciliation with books, and preparation of annual return.

CMP-08 consolidation
Turnover reconciliation
Inward supply compilation
RCM-wise segregation
Additional tax via DRC-03
Portal filing (DSC / EVC)

Advisory

Scheme Transition Advisory

Opting in / out of composition, monitoring threshold breach, and shifting to regular GST when needed.

CMP-02 opt-in filing
CMP-04 opt-out filing
Threshold breach tracking
ITC-01 claim on shift
Bill of Supply templates
Post-transition advisory

Our GSTR-4 Filing Services

Eligibility & Opt-In

Assessment of composition eligibility and filing of Form GST CMP-02 to opt into the scheme.

Quarterly CMP-08 Filing

Preparation and filing of quarterly CMP-08 with tax computation and challan payment.

Annual GSTR-4 Filing

Consolidation, reconciliation, and portal filing of the annual GSTR-4 return within due dates.

RCM Management

Identifying and tracking RCM liabilities on inward supplies — a common compliance gap for composition dealers.

Books Reconciliation

Reconciliation of books, purchase register, and sales data with CMP-08 and GSTR-4 filings.

Late Fee Optimisation

Use of amnesty windows and reduced late fee notifications to minimise legacy GSTR-4 non-filing cost.

Bill of Supply & Invoicing

Designing compliant Bill of Supply templates, ensuring no tax is separately charged on invoices.

Scheme Exit & ITC-01

Filing CMP-04 for opt-out and ITC-01 to claim eligible credit on stock at the time of transition.

Businesses That Typically File GSTR-4

Small Traders

Neighbourhood retailers, wholesale dealers, and small traders with turnover within the composition limit.

Small Manufacturers

Small-scale manufacturers of goods opting to pay tax at the flat 1% composition rate.

Restaurants & Caterers

Restaurants (not serving alcohol) opting for composition at the 5% flat rate on turnover.

Service Providers (6%)

Small service providers under Notification 02/2019 — professionals, coaches, small agencies.

Mixed Suppliers

Dealers supplying both goods and services but staying within ₹50 lakh turnover under Sec 10(2A).

MSME B2C Players

B2C-focused MSMEs where customers do not need input tax credit and simple compliance is a priority.

Transition from Regular

Businesses that have opted in via CMP-02 and are moving from regular GST to composition.

Legacy Non-Filers

Composition dealers with multiple prior years of unfiled GSTR-4 needing structured amnesty filing.

Information & Documents Needed for GSTR-4

Turnover & Sales Data

Sales / turnover register
Bill of Supply series
Rate-wise turnover split
B2C summary
Quarterly CMP-08 filed
Books / cash memos
Bank statements

Purchase & RCM Data

Purchase register
Vendor-wise inward data
RCM-applicable invoices
Unregistered supplier details
Import of services data
Tax paid under RCM
Expense ledgers

Registration & Portal

GSTIN & composition option
CMP-02 / CMP-04 filings
GST portal login credentials
DSC / EVC of signatory
Earlier GSTR-4 filings
DRC-03 challans, if any
Notices / amnesty communication

Our End-to-End GSTR-4 Approach

Scheme Check

Verifying composition option, threshold compliance, and correct applicable tax rate.

Data Collation

Collecting quarterly turnover, CMP-08 data, purchase register, and RCM data from books.

Reconciliation

Tying CMP-08 quarters with books, identifying RCM gaps, and finalising GSTR-4 tables.

Filing

Filing GSTR-4 on the portal with DSC / EVC, including DRC-03 payment for any shortfall.

Compliance MIS

Sharing final MIS, quarterly compliance calendar, and advisory on threshold monitoring.

Why Choose Us for GSTR-4 Filing

✓

Focused composition scheme expertise

✓

CMP-08 + GSTR-4 integrated flow

✓

Sharp RCM identification

✓

Amnesty & late fee optimisation

✓

Transition planning in & out

✓

Affordable MSME-friendly packages

✓

Threshold & eligibility tracking

✓

Single-point composition desk

FAQs on GSTR-4 Filing

Who is required to file GSTR-4?

GSTR-4 is required to be filed by every taxpayer registered under the Composition Scheme — whether under Section 10(1) covering traders, manufacturers, and restaurants with aggregate turnover up to ₹1.5 crore, or under Section 10(2A) covering small service providers and mixed suppliers with turnover up to ₹50 lakh under Notification 02/2019. Regular taxpayers, input service distributors, non-resident taxable persons, TDS / TCS registrants, and OIDAR providers are not required to file GSTR-4 — they have their own dedicated returns. A composition dealer must file GSTR-4 even if there were no supplies during the year.

What is the due date for filing GSTR-4?

The annual GSTR-4 is generally due by 30 April of the financial year immediately following the relevant financial year. For example, GSTR-4 for FY 2023-24 is typically due by 30 April 2024. In addition, composition dealers file Form CMP-08 on a quarterly basis by the 18th of the month following the quarter — CMP-08 is the quarterly tax payment statement, while GSTR-4 is the annual declaration. The government has in the past extended GSTR-4 due dates through CBIC notifications, and has also run amnesty schemes to clean up legacy non-filing.

What is the difference between CMP-08 and GSTR-4?

CMP-08 is a quarterly self-assessed statement of tax payable, filed by composition dealers by the 18th of the month following each quarter. The actual tax is paid along with CMP-08 through Form PMT-06. GSTR-4, on the other hand, is the annual return — a consolidated statement summarising the year's outward supplies, inward supplies, RCM liabilities, and tax paid across all four CMP-08s. CMP-08 is the "payment" part, while GSTR-4 is the "declaration" part. Both are required — one does not replace the other — and our team handles both as an integrated quarterly + annual package.

Can a composition dealer claim ITC?

No. One of the defining features of the composition scheme under Section 10 is that the dealer pays a flat, lower rate of tax on turnover in lieu of input tax credit. A composition dealer cannot issue a tax invoice (Bill of Supply is used instead), cannot collect tax from customers, and cannot claim ITC on inward supplies of goods or services. Because of this, the composition scheme is well-suited to businesses whose customers are end-consumers who don't need ITC, but usually unsuitable for B2B-heavy businesses whose customers strongly prefer tax invoices with clear GST charged.

Does a composition dealer need to pay tax under RCM?

Yes. Composition dealers are not exempt from the reverse charge mechanism. They are liable to pay tax under RCM on specified supplies received — for example, goods transport agency services, import of services, services from directors, legal services from advocates, and other notified supplies — at the applicable rates under the CGST / IGST Acts (not at the composition rate). Importantly, even though they pay RCM, they cannot claim ITC of such tax. RCM is reported in Tables 4B, 4C, and 4D of GSTR-4 and is a recurring area where composition dealers need guidance to stay compliant.

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

Under Section 47 of the CGST Act, late filing of GSTR-4 attracts a late fee — typically ₹50 per day (₹25 CGST + ₹25 SGST) for returns with tax liability and ₹20 per day (₹10 CGST + ₹10 SGST) for nil returns, subject to a prescribed maximum cap. The government has from time to time notified reduced late fees and amnesty schemes for GSTR-4 — often capping the total fee at a much lower number for returns filed within a defined amnesty window. For clients with legacy non-filing, we time the clean-up to coincide with the most beneficial amnesty notification available.

How do we opt into or out of the composition scheme?

To opt into the composition scheme, an eligible taxpayer files Form GST CMP-02 on the GST portal before the beginning of the financial year (or at the time of a fresh GST registration through Form GST REG-01). To opt out — either voluntarily or because the turnover has crossed the threshold — the taxpayer files Form GST CMP-04, and may also file Form GST ITC-01 to claim input tax credit on stock of inputs, semi-finished, and finished goods held on the date of transition. Each of these steps has its own documentation and timelines that need to be coordinated carefully.

Is GSTR-4 applicable if there are no sales during the year?

Yes. A composition dealer who has no outward supplies in a particular quarter or year is still required to file CMP-08 and GSTR-4 as nil returns. The GST system treats GSTR-4 as a mandatory annual declaration for every active composition GSTIN, irrespective of transaction volume. Not filing nil returns will still trigger late fees and may block the dealer's ability to file future returns or continue in the composition scheme. We treat nil GSTR-4 as equally important as full-value filings in our compliance calendar.

Simple, Accurate GSTR-4 Filing for Every Composition Dealer

Partner with our specialists for end-to-end GSTR-4 Filing Services — quarterly CMP-08, annual GSTR-4, RCM management, amnesty filings, and scheme transition — all under one roof.

Talk to an Expert