Quarterly Tax Filing
If you’re registered under the Composition Scheme, you must file a statement every quarter in Form CMP-08. This form simply shows the self-assessed tax you’ve paid for that quarter, and it must be submitted by the 18th of the month following the end of each quarter.
Annual Return Filing
In addition to the quarterly statement, you also need to file an annual return in Form GSTR-4. This return summarizes your total sales and purchases for the financial year. Earlier, the due date was 30th April, but starting from FY 2024–25, the new deadline is 30th June after the financial year ends. [ Rule 62 (1)] CGST Notification 12/2024 dated 10th July 2024.
How Tax is Paid
You have to pay your tax dues through the electronic cash ledger available on the GST portal. That means your payments need to be made online using your GST account.
What GSTR-4 Contains
The GSTR-4 form must include detailed information about all inward supplies (your purchases) from both registered and unregistered dealers, and a summary of all your outward supplies (sales).
Switching to Composition Mid-Year
If you move to the Composition Scheme partway through a year, you still need to file regular GST returns (like GSTR-1, GSTR-3B) for the period before you switched. Also, you cannot claim input tax credit on any purchases made before joining the scheme.
Exiting the Composition Scheme
If you leave the scheme either voluntarily or because of a GST officer’s order, you still need to file CMP-08 for the last quarter you were under composition, and file GSTR-4 for that year. CMP-08 should be filed by the 18th of the month after the quarter, and GSTR-4 by 30th April following the end of the financial year. [ Rule 62 (5)]
GSTR-4 Late Fee and Penalty Update:
As per the latest update, the late fee for filing GSTR-4 has been revised as follows:
Rs. 50 per day is charged as a late fee for failure to file GSTR-4 after the due date, up to a maximum of Rs. 2,000. If your tax liability is nil, the maximum late fee is reduced to Rs. 500.
Previous Late Fee Structure:
Earlier, the late fee was Rs. 200 per day.
The maximum late fee under the old rules could go up to Rs. 5,000, regardless of the tax liability.
This change reduces the financial burden for those with lower or no tax liability when filing late.