Overview
GSTR-4 is a quarterly GST return that must be filed by all composition scheme businesses. Composition scheme allows eligible businesses to pay a fixed percentage of turnover as GST instead of paying on individual transactions. EZTax.in GST Accounting makes GSTR-4 preparation simple with automated features for data import and JSON file generation.
Key Point: GSTR-4 filing frequency depends on the type and annual turnover of your composition scheme business. All composition taxpayers must file GSTR-4 returns quarterly along with the applicable tax payment.
GSTR-4 Preparation Steps
Prepare your GSTR-4 return by following these structured steps in EZTax.in GST Accounting:
- 1Select Quarter and Year
GSTR-4 contains details of inward and outward supplies for composition scheme taxpayers on a quarterly basis. Select the relevant quarter (Q1, Q2, Q3, Q4) and the corresponding year. The system will automatically prepare your return for that quarter.
- 2Enter/Import Inward Supplies
Import or manually enter all inward supplies (purchases) made during the quarter. Include supplies from registered suppliers, reverse charge supplies, unregistered supplier purchases, and imported services. All data is imported or entered through structured forms in the system.
- 3Review and Verify Data
Carefully review all imported and manually entered data for accuracy. The system displays invoice summaries and reconciliation details. Verify that all inward and outward supplies are correctly recorded before proceeding with the JSON file generation.
- 4Record Outward Supplies
Enter the net turnover of outward supplies adjusted for advances and goods returned at the applicable tax rate. Composition taxpayers are not eligible for interstate supplies. The system automatically calculates taxes based on the composition scheme rate selected.
- 5Enter Amendments (if applicable)
If amending any inward supply details or outward supply details from previous quarters, enter those amendments separately. The system requires both original invoice details and amended details for reconciliation and audit purposes.
- 6Download GSTR-4 JSON File
Once all data is entered and verified, download the GSTR-4 JSON file from EZTax.in. This file contains all inward and outward supply data in the format required by the GSTN portal for submission.
- 7Upload to GST Portal
Login to the GST government portal (https://www.gst.gov.in/) and upload the downloaded JSON file. Follow the GSTN portal's process to complete your GSTR-4 e-filing and payment.
Inward Supplies Categories
Inward supplies refer to receipt of goods or services with or without consideration. The following categories are tracked in GSTR-4:
From Registered Suppliers
Supplies from registered dealers other than those attracting reverse charge. Auto-populated from supplier GSTR-1 and GSTR-5 filings.
Reverse Charge Supplies
Purchases from registered dealers that attract GST under reverse charge. Enter invoice number, date, value, and taxes.
Unregistered Suppliers
All purchases from unregistered dealers. Enter invoice details, taxable value, and applicable rate. GSTIN not required.
Imported Services
Services where supplier is outside India and recipient is in India. Must declare all IGST paid on imported services.
Reverse Charge Mechanism: When a registered dealer purchases from an unregistered dealer, the recipient becomes liable to pay GST instead of the supplier. This applies to specified goods and services.
Amendments to Previous Returns
Any changes to details of supplies provided in previous returns must be declared as amendments in the current return:
- Inward Supply Amendments: Including debit notes/credit notes issued to both registered and unregistered suppliers
- Outward Supply Amendments: Any changes to sales details from earlier quarters, including original and revised details
- Original Invoice Details Required: For amendments, the system requires both original and amended invoice information for complete audit trail
- Debit/Credit Notes: All debit notes and credit notes issued during the quarter must be documented separately
Important: Maintain clear records of all amendments with both original and revised details. This ensures proper GST compliance and helps during government audits.
Outward Supplies for Composition Dealers
Composition dealers must report net turnover of outward supplies after adjusting for advances and goods returned:
- Net Turnover Calculation: Total turnover minus advances received and goods returned
- Applicable Rate: Report at the composition scheme rate applicable to your business type (1%, 5%, or 6%)
- IGST Not Applicable: Composition taxpayers cannot make inter-state supplies and IGST is not applicable
- No ITC: Composition scheme dealers are not eligible to claim Input Tax Credit (ITC)
- Rate Selection: The appropriate rate is selected based on the nature of business (trading, manufacturing, or services)
Download and File JSON
Once all GSTR-4 data is entered and verified, follow these final steps:
- Download JSON: The system provides the GSTR-4 JSON file in GSTN portal-compatible format
- Multi-channel Consolidation: The JSON file includes all inward and outward supplies from various entry methods in one unified file
- GST Portal Login: Visit https://www.gst.gov.in/ and login with your GSTIN credentials
- File Upload: Upload the JSON file through the GSTR-4 filing section. Processing typically takes a few seconds.
- Complete Filing: Follow GSTN portal instructions to finalize your filing and make applicable tax payments
Reference: For troubleshooting e-signature issues with DSC, refer to "How to solve emSigner failure while using DSC?"
Need Help with GSTR-4 Filing?
Our GST experts are available to assist composition dealers with quarterly return filing and compliance.