How to prepare GSTR-4 annual return for composition taxpayers using offline tools?

What is GSTR?

A GSTR is a Goods and Services tax return that an individual has to file. A GSTR is a monthly or quarterly summary report of the returns filed by a composition taxpayer. It discloses all the details of outward supplies for the month by an individual with the tax liability. An individual can file the GSTR on purchases, sales, output GST and input tax credit.

Any business with an annual aggregate of INR 5 crore or above will have to file two monthly returns and one annual return. The returns are different for different categories. There are more than 15 types of GSTR, one of which is GSTR-4.

What is the GSTR-4 return?

GSTR-4 is a return for a taxpayer registered under Section 10 of the CGST Act of composition scheme. It is paid by the composition dealers. The normal taxpayers have to furnish three monthly returns, whereas a composition taxpayer will have to file only one return in a year, i.e., 30th April, every financial year.

It is filed on an annual basis. The last date of GSTR-4 returns for FY 2020-21 30th April 2021 and for FY 2021-2022 is 30th April 2022. A taxpayer that falls under the category of composition taxpayer, i.e., under Section 10 of the CGST Act, can file the GSTR-4 return.

Steps of filing GSTR-4 annual return using offline tools

The steps required for filing the GSTR-4 (annual return) using the offline tools are as follows:

1. Download Form GSTR-4 (Annual return) offline utility

The first step is to download the form GSTR-4 from the GST portal. You can go to the portal, click downloads. Go to offline tools and select the GSTR-4 (Annual) offline tool option. A zip file will be downloaded. You can open the file in an excel sheet by double-clicking on it.

2. Download the generated JSON file

The next step in filing the GSTR-4 is to download the JSON file from the GST portal. You can download the file for GSTR-4 details, Form CMP-08 details, TDS/TCS details, etc. You can download the JSON file by logging in to the GST portal. Navigate to Services, click Returns. After that, click on the 'Annual Return' options. You have to select the financial year and search for the file. You will receive an option of Download JSON. After clicking that, click Generate JSON, and the file will be downloaded.  

3. Worksheet Tabs in Form GSTR-4

The next step is to fill the worksheet tabs in GSTR-4. There are eight tabs in the GSTR-4 offline utility. It includes Read Me, Home, 4A. B2B, 4B. B2BRC, 4C. URP, 4D. IMPS, 5. CMP-08, 6. Inward, outward supplies, and 7. TDS TCS Credit received. The main page is the Home page, where you can enter the mandatory GSTR-4 details. You can import the JSON file and open it. You can enter the details in worksheet tabs and import the file.

The 4A. B2B is used to enter tax rate-wise details of inward supplies received from registered suppliers, to validate the details entered, and to navigate back to the Home page. The 4A. URP is used to enter the tax rate-wise consolidated details received from unregistered suppliers. The sheet 4D. IMPS is used to enter the details of import of service, validate the entered details, and navigate back to the Home page.

The 5. CMP-08 is used to view the auto-drafted details. You can import the data and auto-populate the table from the GSTR-4 JSON File. The 6. Inward Outward Supplies sheet is used to enter the outward supplies tax rate-wise details to auto-draft the details of inward supplies or purchase details in GSTR-4.

The 7. TDS TCS Credit Received is used to review the TDS/TCS details during the year. You can also auto-populate the table using the GSTR-4 JSON File.

4. Enter and validate the details in the offline tool

After preparing the worksheet tabs, download the GSTR-4 offline tool from the GST portal. You can edit or enter the new details in Table no. 4 and Table 6. After that, generate the JSON file for upload. You can click on the validate sheet button to validate the entries made offline. Also, note that you cannot validate all the details. You can only validate specific GSTR details available at the type of offline utility, like the type of tax and GSTIN structure, etc.

5. Upload the Generated JSON File

You can log in to the GST portal and upload the generated JSON file by using the Form GSTR-4 (Annual return) offline utility. The previous details will be updated with the newly uploaded GSTR details.

6. Download Error JSON File

An error report will contain all the entries that could not be validated. You can view the successful entries online on the portal and download the error file. An error report will give you a review of all the failed entries that you can enter again from starting.

Conclusion

GSTR-4 is only available to the composition taxpayers that fall under the category of Section 10 of the CGST Act. The businesses and individuals who don't fall under this category cannot proceed with the Form. There are more than 15 GSTR made individually, keeping in mind the different requirements of the business. It includes GSTR-1, GSTR-2, GSTR-3, GSTR-3B, CMP-08, GSTR-4, GSTR-5, GSTR-6, GSTR-7, GSTR-8, GSTR-9, GSTR-9A, GSTR-9C, GSTR-10, and GSTR-11.

Also Read:

1) Key Advantages and Disadvantages of GST
2) How to Pay GST Online Easily? A Step-by-step Guide
3) Your Guide to How to Apply for GST for Your Business
4) Income Tax Return: All you need to know about ITR

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FAQS

Q. Who doesn't need to file GSTR-4?

Ans. The individuals and businesses that are not required to file GSTR-4 (Annual Return) are listed as follows:

• UNI holders
• Individuals who don't fall under the category of composition taxpayers
• Input service distributor
• OIDAR
• Non-resident taxable person
• Casual taxpayer distributor
• A person required to collect TCS u/s 52
• A person required to deduct TDS u/s 51

Q. What is GST r4?

Ans. GST r4 is a return for a taxpayer registered under Section 10 of the CGST Act of the composition scheme. It is paid by the composition dealers. The normal taxpayers have to furnish three monthly returns, whereas a composition taxpayer will have to file only one return in a year.

Q. How can I revise the GSTR-4 after filing it?

Ans. You cannot revise the GSTR-4 after filing. However, you will get an option to amend the data under the previous tax period head in the GSTR-4. It is advised to be vigilant while filing the GSTR-4 and double-check it before uploading it. Once uploaded, it cannot be fully amended or revised at all. You can only amend limited entries in the data of the GSTR-4 Form.

Q. Who needs to file GSTR 9C?

Ans. The taxpayers who have an aggregate turnover of more than INR 2 crores in a year are eligible to file the GSTR 9C Form. It needs to be signed digitally by the GST Auditor. In case of any discrepancies or liabilities, while filing the GST returns, you must report to the GST Auditor.