The Goods and Services Tax Network (GSTN), which manages the information technology system of the indirect tax regime, on Tuesday 21/07/2020, announced making available annual return form GSTR-4 on its portal. Vide Notification No 21/2019-Central Tax; dated April 23, 2019 Composition Taxpayers are required to file Form GSTR-4 return on annual basis. The due date for FY 2019-20 has been extended to 31 August, 2020. Given the above, Form GSTR-4 is now made available on GSTN Portal.
With effect from 1st April 2019, all Composition Taxpayers are required to file Form GSTR-4 Annual Return, on an annual basis, for each financial year. All registered taxpayers who have opted for composition scheme or were under composition scheme under GST for any period during a financial year, need to file Form GSTR-4 annually.
GSTR-4 is an annual return that has to be filed by a composition dealer. Under the GST composition scheme, taxpayers will be required to file one annual return, unlike a normal taxpayer who needs to furnish monthly/quarterly returns. Composition Scheme is a scheme for small taxpayers under GST. Small taxpayers can get rid of tedious GST formalities and pay GST at a fixed rate of turnover. This scheme can be opted by any taxpayer whose turnover is less than Rs. 1.5 crore.
The Govt vide Notification No. 21/2019-Central Tax, dated April 23, 2019 has prescribed Form CMP-08 containing the details of payment of self-assessed tax to be filed by Composition dealers on quarterly basis. Under the new arrangement, composition assesses are not required to continue with quarterly return, but need to submit a statement only in form GST CMP-08. Earlier, a composition taxpayer had to file returns on a quarterly basis in form GSTR-4; filing of annual returns in form GSTR-9A was optional. Now, annual returns have to be filed in GSTR-4. GSTR-4 can be filed only if all applicable quarterly statements in CMP-08 of that financial year have been filed. This annual return, once filed, can’t be revised.
This will help nearly 17 lakh composition assesses to file annual return with effect from FY2019-20. Theses assesses are not authorized to collect GST from customers and also do not get the benefit of Input Tax Credit (ITC). However, they are permitted to deposit tax at a much lower fixed rate with the government.