GSTR-4 Return Filing: Due Date, Late Fees, Turnover Limit & Who Must File
Every business registered under the GST Composition Scheme files one annual return — and that return is GSTR-4. Miss the deadline, and late fees start accumulating immediately. Get the turnover limit wrong, and you may not even be eligible. This guide covers everything: who must file, what the 30th June deadline really means, how penalties work now versus before, and why GSTR-4 revision simply isn't an option once you've hit submit.
Key Takeaways
A regular taxpayer files two returns every month plus one annual return. A composition dealer works on a much simpler schedule. Quarterly, they submit Form CMP-08 — a statement-cum-challan that covers tax payment. Annually, they file GSTR-4 as their GST annual return, which pulls together outward supplies, inward supplies, tax liability, and any TDS or TCS credit for the full financial year.
That's the core trade-off of the composition scheme: simpler compliance in exchange for some restrictions. You don't get Input Tax Credit. You're limited to intra-state supplies. But you file far less paperwork than a regular taxpayer — and GSTR-4 is the one return that ties the whole year together.
One hard rule worth knowing upfront: GSTR-4 can't be filed once three years have passed from the original due date. After that window closes, it's gone.
The deadline for GSTR-4 filing is 30th June — each year, for the financial year just ended.
So for FY 2025-26, the GSTR-4 due date is 30th June 2026. Miss that date and late fees start from day one — there's no grace period built in. Filing it in July costs money. Filing it in August costs more.
Beyond three years from the due date, filing isn't possible at all. A composition dealer who hasn't filed GSTR-4 for FY 2021-22 (due 30th June 2022) would lose the ability to file that return entirely by 30th June 2025.
Any taxpayer registered under the GST Composition Scheme must file GSTR-4. There's no separate turnover threshold that triggers GSTR-4 specifically — if you're under the composition scheme, you file it.
This also covers dealers under the special composition scheme for service providers, brought in through CGST (Rate) Notification 2/2019 dated 7th March 2020, effective from FY 2019-20. So service providers who opted into that scheme aren't exempt — they file GSTR-4 just like manufacturers and traders do.
To be in the composition scheme at all — and therefore to file GSTR-4 — a business must fall within the scheme's annual turnover threshold. Those limits vary by business type and location.
Manufacturers and traders can opt for the GST Composition Scheme if their annual turnover stays under Rs. 1.5 crore. For businesses in special category states, that cap drops to Rs. 75 lakh. Restaurants (excluding those serving alcohol) fall under the same thresholds.
Service providers work under a stricter limit: Rs. 50 lakh annually. It's a lower ceiling, and this is where a lot of confusion happens — many service-based small businesses assume they qualify at Rs. 1.5 crore and discover mid-year that they don't.
One honest caveat: if your business spans multiple states or sits near a threshold boundary, these limits can get complicated fast. Getting state-specific clarity from a GST consultant before opting in is worth the effort.
The composition scheme applies only to intra-state supplies. If your business sells across state lines, the scheme — and by extension, GSTR-4 — doesn't apply.
No. Once you submit GSTR-4 on the GST portal, it's final.
There's no revision window, no correction mechanism, no amendment form. Whatever gets filed is what stands. This makes it worth double-checking every figure — outward supplies, tax liability, inward supplies, TDS and TCS credits — before hitting submit. A mistake after filing has no easy fix.
The late fee structure for GSTR-4 has changed — and the current rates are much more manageable than what existed before.
Current late fee: Rs. 50 per day, capped at a maximum of Rs. 2,000.
If your tax liability is nil: The cap drops further — maximum late fee is Rs. 500, regardless of how many days pass.
What used to apply: The older rule charged Rs. 200 per day, with a maximum cap of Rs. 5,000. That's a meaningful difference, especially for dealers who fell behind for extended periods.
The penalty for late GSTR-4 filing still kicks in from day one after the due date. Even with the lower cap, letting it accumulate across multiple financial years isn't a good strategy — and it affects your standing on the GST portal.
Every taxpayer registered under the GST Composition Scheme must file GSTR-4 annually. This covers manufacturers, traders, restaurants, and service providers who opted into the special composition scheme under CGST Notification 2/2019. If you're filing quarterly CMP-08 statements, you're also required to file GSTR-4 by 30th June each year.
When a composition dealer has zero tax liability for the financial year, the late fee cap is Rs. 500 — not the standard Rs. 2,000. The daily rate of Rs. 50 still applies, but it stops at Rs. 500 total. File as early as possible regardless; there's no benefit to waiting when the return is nil.
Log into the GST portal, go to Returns > Annual Return, and select GSTR-4 for the relevant financial year. The form pulls in auto-populated data from your CMP-08 filings. You'll then verify outward supply details, inward supply information, tax already paid, and any TDS or TCS credit before final submission. Many small businesses use GST Suvidha Kendras for assisted filing if they prefer hands-on support.
No — and this is one of the biggest trade-offs of the composition scheme. Composition dealers can't claim ITC on purchases. That's part of the simplified structure: lower compliance burden, fixed-rate tax on turnover, but no credit on inputs. If ITC is important to your business model, the regular GST scheme is worth considering instead.
GSTR-4 can't be revised once submitted on the GST portal. There's no amendment option. If an error slips through — a wrong turnover figure, a missed supply entry — it can't be corrected within GSTR-4 itself. The practical approach is to review every field carefully before filing and reconcile all figures against your CMP-08 statements for that year.
Service providers under the composition scheme have an annual turnover cap of Rs. 50 lakh. This is lower than the Rs. 1.5 crore limit for manufacturers and traders, and lower than the Rs. 75 lakh threshold for businesses in special category states. Crossing this limit during the year means the composition scheme ceases to apply — and GSTR-4 would no longer be the right return to file.
🚀 Get GST Filing Help from legaldev.in!
Visit legaldev.in — a team of expert CAs is available for monthly GST filing, GST registration, notice replies, and all GST-related services.
Pricing is transparent with no hidden charges. First consultation is FREE.
👉 Visit: www.legaldev.in | Call/WhatsApp: 8588808388
Your email address will not be published. Required fields are marked *