Deadline Reminder: GSTR-4 Filing for Composition Scheme Taxpayers

GSTR-4 Filing Due Date Extended to June 30, 2025 for FY 2024–25: What Composition Dealers Need to Know

In a welcome compliance relief, the Goods and Services Tax Network (GSTN) has extended the deadline for filing the GSTR-4 Annual Return for financial year 2024–25. Taxpayers registered under the Composition Scheme now have time until June 30, 2025—a two-month extension from the original April 30 deadline—to finalise their returns.

Who Needs to File GSTR-4?

Filing GSTR-4 is compulsory for all taxpayers who were enrolled under the Composition Scheme at any time during FY 2024–25—even for part of the year. This includes:

Businesses that opted out of the scheme mid-year.
Dealers whose registrations were cancelled after operating under composition.
Taxpayers with nil turnover for the year (filing is still required).

Understanding the Composition Scheme and GSTR-4

The Composition Scheme is designed to simplify GST for small businesses by allowing tax payment at a fixed rate on turnover. Instead of monthly filings, dealers under the scheme submit quarterly CMP-08 statements and one annual return—GSTR-4.

GSTR-4 captures:

Annual turnover (outward supplies)
Purchases and inward supplies (including RCM)
Import details, if any
Tax paid (along with CMP-08 references)

Important: Ensure all four quarterly CMP-08 filings for FY 2024–25 are completed before attempting GSTR-4.

What Information is Needed?

Before filing, you’ll need to compile:

A year-wise summary of outward supplies (sales)
Details of inward supplies (purchases) from both GST-registered and unregistered vendors
CMP-08 payment references for each quarter
Any tax, interest, or late fees paid during the year
Import of services (if applicable)

Penalty for Missing the Deadline

If GSTR-4 is not filed by June 30, 2025, the following late fees apply:

₹50 per day (₹25 CGST + ₹25 SGST)
Capped at ₹2,000 for regular filings (₹1,000 CGST + ₹1,000 SGST)
For nil returns: capped at ₹500 (₹250 CGST + ₹250 SGST)
18% annual interest on delayed tax dues

Persistent non-compliance may also lead to cancellation of GST registration.

Filing Process – Step-by-Step

Login to the GST portal at www.gst.gov.in
Navigate to Services > Returns > Annual Return
Select FY 2024–25
Use the online form or offline utility to prepare your return
Verify details carefully and submit using DSC or EVC

Best Practices for Hassle-Free Compliance

Start reconciling data early—don’t wait until June.
Cross-check CMP-08 totals with books of accounts.
Confirm accuracy of supplier-wise purchase records.
File nil returns correctly to avoid system-generated penalties.

Need help compiling or filing GSTR-4? Reach out to your Chartered Accountant for professional assistance. For updates on GST compliance, SEBI regulations, and filing deadlines, stay connected with our weekly briefings.