Annual Return Filing of Composite Dealer

Annual Return Filing of Composite Dealer

📋 Annual Return Filing for Composition Dealers – Complete 2025 Guide
If you're a Composition Dealer registered under GST, you enjoy the benefit of reduced tax rates and minimal compliance. However, one key responsibility remains — filing your Annual Return in GSTR-4.
Filing the GSTR-4 Annual Return is a mandatory compliance requirement under the Composition Scheme. Failure to file this return can result in heavy penalties and even cancellation of your GST registration.
This 2025 guide explains what GSTR-4 is, who needs to file it, the due date, the step-by-step filing process, and how our experts can help you avoid mistakes and file accurately on time.

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📌 What is GSTR-4?
GSTR-4 is the Annual Return that must be filed by all composition dealers under GST. Unlike regular taxpayers who file monthly GSTR-1 and GSTR-3B, composition taxpayers:

• Pay tax quarterly via CMP-08
• File only one annual return in GSTR-4

This return consolidates your annual turnover, tax liability, inward supplies, and other relevant information.
✅ It replaces the earlier quarterly GSTR-4 return (pre-2020) and is now filed only once per year.

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✅ Who Needs to File GSTR-4?
GSTR-4 is mandatory for all taxpayers registered under the Composition Scheme under Section 10 of the CGST Act, including:

• Retail traders
• Manufacturers (excluding notified goods)
• Restaurants (without alcohol)
• Small service providers (opted into composition)

📌 Even if you had no business activity during the year, you must file a NIL GSTR-4.

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📅 GSTR-4 Filing Due Date (FY 2024–25)

Period	Financial Year 2024–25
Filing Due Date	30th April 2025

Missing the deadline can lead to:

• Late fee of ₹50 per day
• ₹20 per day in case of NIL returns
• A maximum penalty of ₹5,000
• Blocking of e-way bills or GST cancellation

✅ We help you track deadlines and file well before the due date.

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🧾 Details Required in GSTR-4
Here’s what a composition dealer must include in the GSTR-4 annual return:

Section	Details to be Furnished
Basic Information	GSTIN, legal name, trade name
Inward Supplies (from registered/unregistered persons)	Taxable purchases, tax paid under reverse charge
Tax Liability Summary	Turnover, tax paid via CMP-08
Amendments	Corrections to previous year’s data (if any)
TDS/TCS Credit	If applicable
Late Fees (if any)	Self-assessment of penalty

📌 You don’t need to provide invoice-level data — GSTR-4 requires summary-level reporting.

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🖥️ Step-by-Step GSTR-4 Filing Process
You can file GSTR-4 online using the GST Portal. Here's how:
Step 1: Login
Visit gst.gov.in and log in with your GSTIN and password.
Step 2: Navigate to GSTR-4
Click on Returns Dashboard > Select Financial Year > Annual Return GSTR-4
Step 3: Fill in Details

• Provide turnover figures
• Enter the inward supply and tax liability
• Cross-check CMP-08 filings

Step 4: Preview & Submit

• Review all data
• Click “Proceed to File.”
• Submit using DSC or EVC

Step 5: Download Acknowledgement

• Save the filed GSTR-4 return and ARN for records

📌 We offer filing support, reconciliation, and annual summaries to make this process effortless.

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🧮 GSTR-4 vs CMP-08 – Know the Difference

Aspect	CMP-08	GSTR-4
Type	Quarterly return for tax payment	Annual summary return
Frequency	4 times a year	Once a year
Purpose	Pay self-assessed tax	Declare turnover and tax summary
Invoice-level details?	Not required	Not required
Filing Mode	Online via the GST portal	Online via the GST portal

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🔍 Common Mistakes to Avoid

Mistake	Consequence
Late filing	₹50/day penalty
Missing inward supply data	Inaccurate ITC records, compliance mismatch
Not reconciling CMP-08 & GSTR-4	Tax mismatch may trigger a GST notice
Forgetting NIL return (no business)	Still liable to file — avoid cancellation

✅ We help reconcile data, validate details, and avoid late fees or compliance errors.

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💼 Why Choose Us for GSTR-4 Annual Filing?
With thousands of returns filed and years of GST experience, we simplify your compliance with:

• ✅ Full GSTR-4 preparation and filing
• ✅ CMP-08 and GSTR-4 reconciliation
• ✅ Error correction and past return rectification
• ✅ Late fee calculation and avoidance strategy
• ✅ One-click annual compliance reporting

📞 Are you a small trader or a composition dealer?
Let us file your GSTR-4 accurately — and on time.

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🏁 Final Thoughts
Annual return filing through GSTR-4 is a legal requirement for every composition dealer in India. While the composition scheme reduces your monthly stress, you still need to close the year with proper filings.
✅ Avoid notices, late fees, and registration issues. Let our experts file your GSTR-4 now.