List of Documents required

Who should file GSTR – 4?

Every taxpayer who has opted for the composition scheme under the GST regime needs to file GSTR-4. The composition scheme allows you to pay GST according to a fixed turnover rate instead of the regular GST deadlines. While a typical taxpayer provides three monthly returns, a composition taxpayer hands over only one GSTR-4. The GSTR-4 form needs to be filed quarterly on the 18^th of the last month in the quarter. Further, as a taxpayer under the composition scheme, annual GSTR-9A will be required to be filed on or before the 31^st of December in the succeeding financial year.

Eligibility criteria for composition scheme

• A business’ turnover needs to be below Rs. 1 Cr. to opt for this scheme. If you reside in Himachal Pradesh, or the North-Eastern states, your turnover must be below Rs. 75 Lakh.
• To calculate the turnover, all businesses registered under the same PAN must be taken into consideration.
• All notice boards at the business address must mention “composition taxable person”. This same phrase also needs to be mentioned on every bill of supply that you issue.
• If you are a supplier of goods, you can provide services only to the limit of Rs. 5 Lakh
• Dealers are not allowed to claim Input Tax Credit or collect composition Tax.

Entities that cannot opt for this scheme:

• Any supplier other than those related to restaurant business
• A regular or non-resident taxable person
• Any business supplying goods using an e-commerce operator, tobacco, paan masala, and ice cream manufacturers.
• Supplier of GST-exempted goods
• Supplier of inter-state goods
• Supplier of non-taxable goods