{"id":8183,"date":"2020-09-03T23:52:43","date_gmt":"2020-09-03T18:22:43","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=8183"},"modified":"2026-03-22T18:19:35","modified_gmt":"2026-03-22T12:49:35","slug":"key-takeaways-of-gstr-4-annual-composition-scheme-dealers","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/key-takeaways-of-gstr-4-annual-composition-scheme-dealers\/","title":{"rendered":"Composition scheme in GST"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69e6f4bd21cc9\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69e6f4bd21cc9\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/key-takeaways-of-gstr-4-annual-composition-scheme-dealers\/#KEY_TAKEAWAYS_OF_GST_COMPOSITION_SCHEME\" title=\"KEY TAKEAWAYS OF GST COMPOSITION SCHEME\">KEY TAKEAWAYS OF GST COMPOSITION SCHEME<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/key-takeaways-of-gstr-4-annual-composition-scheme-dealers\/#Whats_the_GST_COMPOSITION_SCHEME\" title=\"What&#8217;s the GST COMPOSITION SCHEME?\">What&#8217;s the GST COMPOSITION SCHEME?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/key-takeaways-of-gstr-4-annual-composition-scheme-dealers\/#Who_cannot_opt_for_the_scheme_of_composition\" title=\"Who cannot opt for the scheme of composition?\">Who cannot opt for the scheme of composition?<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/key-takeaways-of-gstr-4-annual-composition-scheme-dealers\/#GST_composition_scheme_registrations\" title=\"GST composition scheme registrations:\">GST composition scheme registrations:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/key-takeaways-of-gstr-4-annual-composition-scheme-dealers\/#Voluntary_Registrations\" title=\"Voluntary Registrations:\">Voluntary Registrations:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/key-takeaways-of-gstr-4-annual-composition-scheme-dealers\/#The_GST_Rate_applicable_for_Gst_Composition_Scheme\" title=\"The GST Rate applicable for Gst Composition Scheme\u00a0\">The GST Rate applicable for Gst Composition Scheme\u00a0<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/key-takeaways-of-gstr-4-annual-composition-scheme-dealers\/#Format_of_GST_Invoice_for_GST_Composition_Scheme\" title=\"Format of GST Invoice for GST Composition Scheme\">Format of GST Invoice for GST Composition Scheme<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/key-takeaways-of-gstr-4-annual-composition-scheme-dealers\/#COMPARISON_BETWEEN_COMPOSITION_SCHEME_VS_REGULAR_SCHEME\" title=\"COMPARISON BETWEEN. COMPOSITION SCHEME VS REGULAR SCHEME\">COMPARISON BETWEEN. COMPOSITION SCHEME VS REGULAR SCHEME<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/carajput.com\/blog\/key-takeaways-of-gstr-4-annual-composition-scheme-dealers\/#The_validity_of_the_levy_on_composition\" title=\"The validity of the levy on composition\">The validity of the levy on composition<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/carajput.com\/blog\/key-takeaways-of-gstr-4-annual-composition-scheme-dealers\/#GST_Compliance_Regulations_of_the_Composition_Scheme\" title=\"GST Compliance Regulations of the Composition Scheme\">GST Compliance Regulations of the Composition Scheme<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/carajput.com\/blog\/key-takeaways-of-gstr-4-annual-composition-scheme-dealers\/#Prohibition_Conditions_on_Composition_Lev_scheme\" title=\"Prohibition &amp; Conditions on Composition Lev scheme\">Prohibition &amp; Conditions on Composition Lev scheme<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/carajput.com\/blog\/key-takeaways-of-gstr-4-annual-composition-scheme-dealers\/#More_read_GST_Return_compliances_calendar-_Nov_2020\" title=\"More read: GST Return compliances calendar- Nov 2020\">More read: GST Return compliances calendar- Nov 2020<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/carajput.com\/blog\/key-takeaways-of-gstr-4-annual-composition-scheme-dealers\/#The_advantage_under_GST_Composition_Scheme\" title=\"The advantage under GST Composition Scheme\">The advantage under GST Composition Scheme<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/carajput.com\/blog\/key-takeaways-of-gstr-4-annual-composition-scheme-dealers\/#Prohibition_of_GST_Composition_Scheme\" title=\"Prohibition of GST Composition Scheme\">Prohibition of GST Composition Scheme<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/carajput.com\/blog\/key-takeaways-of-gstr-4-annual-composition-scheme-dealers\/#Books_of_Accounts_Records_to_be_maintained_by_dealer\" title=\"Books of Accounts &amp; Records to be maintained by dealer :\">Books of Accounts &amp; Records to be maintained by dealer :<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/carajput.com\/blog\/key-takeaways-of-gstr-4-annual-composition-scheme-dealers\/#Penalties_%E2%80%93\" title=\"Penalties: \u2013\">Penalties: \u2013<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/carajput.com\/blog\/key-takeaways-of-gstr-4-annual-composition-scheme-dealers\/#Who_is_supposed_to_file_Form_GSTR-4_Annual_Return\" title=\" Who is supposed to file Form GSTR-4 Annual Return: \"> Who is supposed to file Form GSTR-4 Annual Return: <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/carajput.com\/blog\/key-takeaways-of-gstr-4-annual-composition-scheme-dealers\/#Process_step_to_be_taken_care_of_during_the_filling_of_GSTR_4\" title=\" Process step to be taken care of during the filling of GSTR 4:\"> Process step to be taken care of during the filling of GSTR 4:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/carajput.com\/blog\/key-takeaways-of-gstr-4-annual-composition-scheme-dealers\/#A_few_Important_points_to_consider_before_filing_GSTR_4\" title=\" A few Important points to consider before filing GSTR 4:\"> A few Important points to consider before filing GSTR 4:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/carajput.com\/blog\/key-takeaways-of-gstr-4-annual-composition-scheme-dealers\/#New_updates_in_Form_GSTR_4_%E2%80%93\" title=\" New updates in Form GSTR 4 &#8211;\u00a0\"> New updates in Form GSTR 4 &#8211;\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/carajput.com\/blog\/key-takeaways-of-gstr-4-annual-composition-scheme-dealers\/#Annual_Return_Form_GST-4_Available_on_the_GST_Server\" title=\" Annual Return Form GST-4 Available on the GST Server.\"> Annual Return Form GST-4 Available on the GST Server.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/carajput.com\/blog\/key-takeaways-of-gstr-4-annual-composition-scheme-dealers\/#More_read_Key_points_of_42nd_GST_council_Meeting_headed_By_FM_N_Sitharaman\" title=\"More read Key points of 42nd GST council Meeting headed By FM N. Sitharaman\">More read Key points of 42nd GST council Meeting headed By FM N. Sitharaman<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/carajput.com\/blog\/key-takeaways-of-gstr-4-annual-composition-scheme-dealers\/#12_Does_the_GSTR_4_be_revised\" title=\"12. Does the GSTR 4 be revised?\">12. Does the GSTR 4 be revised?<\/a><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/carajput.com\/blog\/key-takeaways-of-gstr-4-annual-composition-scheme-dealers\/#Going_to_conclude\" title=\"Going to conclude\">Going to conclude<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/carajput.com\/blog\/key-takeaways-of-gstr-4-annual-composition-scheme-dealers\/#GSTR-3A_Notices_issued_to_cancelled_Composition_Taxpayers_for_non-filing_of_GSTR-4\" title=\"GSTR-3A Notices issued to cancelled Composition Taxpayers for non-filing of GSTR-4 (\">GSTR-3A Notices issued to cancelled Composition Taxpayers for non-filing of GSTR-4 (<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/carajput.com\/blog\/key-takeaways-of-gstr-4-annual-composition-scheme-dealers\/#GSTN_Advisory_%E2%80%93_Dated_20th_July_2025\" title=\"GSTN Advisory \u2013 Dated 20th July 2025 )\">GSTN Advisory \u2013 Dated 20th July 2025 )<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/carajput.com\/blog\/key-takeaways-of-gstr-4-annual-composition-scheme-dealers\/#Taxpayers_who_have_received_GSTR-3A_notices_should\" title=\"Taxpayers who have received GSTR-3A notices should\u00a0\">Taxpayers who have received GSTR-3A notices should\u00a0<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-31560\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/09\/GST-Composition-Scheme-made-simple.jpg\" alt=\"GST Composition Scheme made simple. \" width=\"1280\" height=\"720\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/09\/GST-Composition-Scheme-made-simple.jpg 1280w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/09\/GST-Composition-Scheme-made-simple-300x169.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/09\/GST-Composition-Scheme-made-simple-1024x576.jpg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/09\/GST-Composition-Scheme-made-simple-768x432.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/09\/GST-Composition-Scheme-made-simple-800x450.jpg 800w\" sizes=\"(max-width: 1280px) 100vw, 1280px\" \/><\/h2>\n<h2><span class=\"ez-toc-section\" id=\"KEY_TAKEAWAYS_OF_GST_COMPOSITION_SCHEME\"><\/span><span style=\"color: #000080;\">KEY TAKEAWAYS OF GST COMPOSITION SCHEME<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h2><span class=\"ez-toc-section\" id=\"Whats_the_GST_COMPOSITION_SCHEME\"><\/span><span style=\"color: #000080;\">What&#8217;s the GST COMPOSITION SCHEME?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The GST Composition Scheme is designed for small taxpayers to reduce the burden of tax enforcement. Small taxpayers do not need to file monthly <a href=\"https:\/\/carajput.com\/gst\/gst-return.php\">GST returns,<\/a> and they need to pay marginal GST at a fixed turnover rate.<\/p>\n<p>Any company with an annual turnover of up to 1.5 Crore can opt for GST registration under the composition scheme.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Who_cannot_opt_for_the_scheme_of_composition\"><\/span><span style=\"color: #000080;\"><strong>Who cannot opt for the scheme of composition<\/strong><strong>?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Manufacturer of ice cream, pan masala, or tobacco<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Businesses that supply goods through an e-commerce operator<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Relief of taxpayers providing exempt supplies<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Supplier of services other than service providers for restaurants<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Casual taxable person or non-resident taxable person<\/p>\n<h3><span class=\"ez-toc-section\" id=\"GST_composition_scheme_registrations\"><\/span>GST composition scheme registrations:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The Composition System is a simple and easy scheme for taxpayers under the GST. Small taxpayers can get rid of tiring <a href=\"https:\/\/carajput.com\/gst\/gst-consultancy.php\">GST<\/a> required documents and pay GST at a fixed turnover rate.<\/p>\n<p>Any taxpayer whose revenue is less than Rs. 1.5 crore* can opt for this scheme.*Central Board of Indirect Taxes and Customs notified the increase to the limit from Rs 1.0 Crore to Rs. 1.5 Crores.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Voluntary_Registrations\"><\/span><span style=\"color: #000080;\">Voluntary Registrations:<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>In order to benefit from the benefits of this program, taxpayers must register on a voluntary basis. If as the case may be the taxpayer&#8217;s yearly income turnover reaches 75 lakh, it will be moved to the normal scheme. Taxpayers who are already part of the composition of GST must register on a voluntary basis under this scheme.<\/p>\n<div class=\"table-responsive\">\n<p>&nbsp;<\/p>\n<\/div>\n<h2><span class=\"ez-toc-section\" id=\"The_GST_Rate_applicable_for_Gst_Composition_Scheme\"><\/span><span style=\"color: #000080;\">The GST Rate applicable for Gst Composition Scheme\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"color: #000080;\">The tax rate or recommended for different categories of Gst\u00a0 Composition Scheme registered persons has been defined below:<\/span><\/p>\n<p>&nbsp;<\/p>\n<div class=\"col-md-8\">\n<div class=\"row flex-column-reverse flex-md-row\">\n<div class=\"col-md-10 mobile-top-gap mobile-pad-gap clsEngContent\">\n<div class=\"row\">\n<div class=\"col-12\">\n<h3 class=\"tallyhelphead\"><span class=\"ez-toc-section\" id=\"Format_of_GST_Invoice_for_GST_Composition_Scheme\"><\/span><span style=\"color: #000080;\">Format of GST Invoice for GST Composition Scheme<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The GST Composite Dealer in GST shall not issue a tax invoice and shall only issue a Bill of supply containing the following details:<\/p>\n<table class=\"table table-bordered\" width=\"100%\">\n<tbody>\n<tr>\n<td width=\"20%\">a)<\/td>\n<td width=\"80%\">Name, GSTIN, and address of the supplier<\/td>\n<\/tr>\n<tr>\n<td width=\"20%\">b)<\/td>\n<td width=\"80%\">a serial number not exceeding 16 characters, in one or various series, containing alphabets or numerals or special characters<\/td>\n<\/tr>\n<tr>\n<td width=\"20%\">c)<\/td>\n<td width=\"80%\">date of its issue<\/td>\n<\/tr>\n<tr>\n<td width=\"20%\">d)<\/td>\n<td width=\"80%\">Name, address, and GST Tax Identification Number or Unique Identity Number, if registered, of the recipient<\/td>\n<\/tr>\n<tr>\n<td width=\"20%\">e)<\/td>\n<td width=\"80%\">HSN Code for goods or services<\/td>\n<\/tr>\n<tr>\n<td width=\"20%\">f)<\/td>\n<td width=\"80%\">Particular of goods or services or both<\/td>\n<\/tr>\n<tr>\n<td width=\"20%\">g)<\/td>\n<td width=\"80%\">Value of supply of goods or services or both after considering discount or abatement, if any;<\/td>\n<\/tr>\n<tr>\n<td width=\"20%\">h)<\/td>\n<td width=\"80%\">a signature or digital signature of the supplier or his authorized representative<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"col-md-4 mobile-pad-gap\">\n<div class=\"row filter\">\n<div><\/div>\n<h3 class=\"col-12\"><span class=\"ez-toc-section\" id=\"COMPARISON_BETWEEN_COMPOSITION_SCHEME_VS_REGULAR_SCHEME\"><\/span><strong style=\"color: #000080;\">COMPARISON BETWEEN. COMPOSITION SCHEME VS REGULAR SCHEME<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/div>\n<\/div>\n<table style=\"height: 337px;\" width=\"829\">\n<thead>\n<tr>\n<td width=\"137\"><strong>\u00a0<\/strong><\/td>\n<td width=\"298\"><span style=\"color: #000080;\"><strong>Composition Scheme<\/strong><\/span><\/td>\n<td width=\"265\"><span style=\"color: #000080;\"><strong>Regular Scheme<\/strong><\/span><\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td width=\"137\"><span style=\"color: #000080;\">Filling of <a href=\"https:\/\/carajput.com\/gst\/gst-return.php\">GST Return<\/a><\/span><\/td>\n<td width=\"298\">Composition taxpayers needed to file <strong>quarterly return<\/strong>.<\/td>\n<td width=\"265\">Ordinary taxpayers needed to file the <strong>monthly return<\/strong><strong>.<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"137\"><span style=\"color: #000080;\">Issue of Tax Invoice<\/span><\/td>\n<td width=\"298\">Composition taxpayers can not issue tax invoices to their clients.<\/td>\n<td width=\"265\">Normal taxpayers can issue a tax invoice to their clients.<\/td>\n<\/tr>\n<tr>\n<td width=\"137\"><span style=\"color: #000080;\">Applicable Tax Rate<\/span><\/td>\n<td width=\"298\">Composition taxpayers need to pay nominal GST at a fixed rate of turnover, which is normally 1-5%.<\/td>\n<td width=\"265\">The tax rate for regular taxpayers&#8217; goods and services, which is from 0-28%.<\/td>\n<\/tr>\n<tr>\n<td width=\"137\"><span style=\"color: #000080;\">Input Credit<\/span><\/td>\n<td width=\"298\">Composition taxpayers cannot avail of ITC benefits.<\/td>\n<td width=\"265\">Normal taxpayers can avail of ITC benefits.<\/td>\n<\/tr>\n<tr>\n<td width=\"137\"><span style=\"color: #000080;\">Regular Compliance<\/span><\/td>\n<td width=\"298\">Relaxed Compliance in order to safeguard small businessmen.<\/td>\n<td width=\"265\">Normal compliance required.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"The_validity_of_the_levy_on_composition\"><\/span><span style=\"color: #000080;\">The validity of the levy on composition<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h2><span style=\"color: #000080;\"><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/09\/gstr-4-filing-due-1.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-8184\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/09\/gstr-4-filing-due-1-1024x538.jpg\" alt=\"www.carajput.com;GST; GSTR-4 due date\" width=\"857\" height=\"450\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/09\/gstr-4-filing-due-1-1024x538.jpg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/09\/gstr-4-filing-due-1-300x158.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/09\/gstr-4-filing-due-1-768x403.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/09\/gstr-4-filing-due-1.jpg 1200w\" sizes=\"(max-width: 857px) 100vw, 857px\" \/><\/a><\/span><\/h2>\n<p>&nbsp;<\/p>\n<p>It focuses on the fulfillment of the conditions discussed above but the person qualified for the scheme can also opt-out of the scheme by filing an application. In the event that the Proper Officer has grounds to suspect that the taxpayer is not eligible for the scheme or has contravened any of the Rules or Actions, the Proper Officer may issue a notice of cause followed by an order rejecting the scheme.<\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"GST_Compliance_Regulations_of_the_Composition_Scheme\"><\/span><span style=\"color: #000080;\"><a href=\"https:\/\/carajput.com\/gst\/gst-compliances.php\">GST Compliance<\/a> Regulations of the Composition Scheme<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>&nbsp;<\/p>\n<p>Composition Scheme Rules under the GST specify for the submission of various forms intended for the respective purposes, followed by a deadline for the submission of the following forms:<\/p>\n<div class=\"table-responsive\">\n<table class=\"table table-bordered\" style=\"height: 752px;\" width=\"843\">\n<tbody>\n<tr>\n<td><span style=\"color: #000080;\"><strong>Form Required<\/strong><\/span><\/td>\n<td><span style=\"color: #000080;\"><strong>The objective of filling FORM<\/strong><\/span><\/td>\n<td><span style=\"color: #000080;\"><strong>Timeline of compliance\u00a0<\/strong><\/span><\/td>\n<\/tr>\n<tr>\n<td>GST CMP-01<\/td>\n<td>To opt into the scheme by provisional GST Registration holder<\/td>\n<td>before the appointed date or within thirty days of the said date<\/td>\n<\/tr>\n<tr>\n<td>GST CMP-02<\/td>\n<td>Intimation of willingness to opt into the scheme for GST registered normal taxpayers<\/td>\n<td>Prior to the commencement of FY<\/td>\n<\/tr>\n<tr>\n<td>GST CMP-03<\/td>\n<td>Details of stock and inward supplies from registered and unregistered \u00a0persons<\/td>\n<td>Required to comply within ninety days of the exercise of the option<\/td>\n<\/tr>\n<tr>\n<td>GST CMP-04<\/td>\n<td>Intimation of withdrawal from the scheme<\/td>\n<td>Required to comply within seven days of the occurrence of the event<\/td>\n<\/tr>\n<tr>\n<td>GST CMP-05<\/td>\n<td>Show cause notice on contravention of Rules or Act by a proper officer<\/td>\n<td>On any contravention<\/td>\n<\/tr>\n<tr>\n<td>GST CMP-06<\/td>\n<td>Needed to reply to show cause notice<\/td>\n<td>Required to comply within fifteen days<\/td>\n<\/tr>\n<tr>\n<td>GST CMP-07<\/td>\n<td>Issue of Order<\/td>\n<td>Required to comply within thirty days<\/td>\n<\/tr>\n<tr>\n<td>GST REG-01<\/td>\n<td>Required for Registration under GST Composition scheme<\/td>\n<td>before the appointed date<\/td>\n<\/tr>\n<tr>\n<td>GST ITC-01<\/td>\n<td>Details of semi-finished, inputs in stocks &amp; finished goods<\/td>\n<td>thirty days of withdrawing option<\/td>\n<\/tr>\n<tr>\n<td>GST ITC-03<\/td>\n<td>Needed for intimation of ITC available<\/td>\n<td>Required to comply within Sixty days of commencement of the FY.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"Prohibition_Conditions_on_Composition_Lev_scheme\"><\/span><span style=\"color: #000080;\"><strong>Prohibition &amp; Conditions on Composition Lev scheme<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The person opting for the scheme must not be a casual taxable person or a non-resident taxable person. The goods kept by him in stock on the appointed date shall not be purchased from a place outside his state. Therefore the products should not be listed as:<\/p>\n<ul>\n<li>Branch outside the State<\/li>\n<li>Agents or principals located outside the territory of the State<\/li>\n<li>Purchase of the Interstate<\/li>\n<li>Goods Imported<\/li>\n<\/ul>\n<p>Where taxpayers deal with unregistered individuals, the tax must be paid or no stock must be kept.<\/p>\n<p>More Read:<\/p>\n<p><span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/carajput.com\/blog\/reasons-for-the-movement-of-goods-under-the-gst\/\"><strong>Reasons for the Movement of Goods under the GST<\/strong><\/a><\/span><\/p>\n<p><a href=\"https:\/\/carajput.com\/blog\/refunds-mechanism-under-service-exports-under-gst-2\/\"><strong>Refund mechanisum under GST service export<\/strong><\/a><\/p>\n<h3><span class=\"ez-toc-section\" id=\"More_read_GST_Return_compliances_calendar-_Nov_2020\"><\/span><span style=\"color: #000080;\"><strong><a style=\"color: #000080;\" href=\"https:\/\/carajput.com\/publications\/gst-complainces-calender-nov-2020.pdf\" data-cke-saved-href=\"https:\/\/carajput.com\/publications\/gst-complainces-calender-nov-2020.pdf\"><span style=\"color: #0000ff;\">More read: GST Return compliances calendar- Nov 2020<\/span><\/a><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>It is not a manufacturer of products that may be notified by the Government during the preceding financial year.<\/p>\n<p>Compulsory show of invoices with the words &#8220;composure of taxable persons not liable for tax on supplies&#8221;<\/p>\n<p>Compulsory display of the words &#8220;Composition Taxable Citizen&#8221; on each notice and sign displayed at a prominent location<\/p>\n<h3><span class=\"ez-toc-section\" id=\"The_advantage_under_GST_Composition_Scheme\"><\/span><span style=\"color: #000080;\"><strong>The advantage under GST Composition Scheme<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>High Liquidity<\/li>\n<li>Less Compliance<\/li>\n<li>Reduced tax liability<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Prohibition_of_GST_Composition_Scheme\"><\/span><span style=\"color: #000080;\"><strong>Prohibition of GST Composition Scheme<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>No Inter-state business<\/li>\n<li>Pay tax from own pocket<\/li>\n<li>No Credit of Input Tax<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Books_of_Accounts_Records_to_be_maintained_by_dealer\"><\/span><span style=\"color: #000080;\">Books of Accounts &amp; Records to be maintained by dealer :<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Registered persons who have opted for a composition scheme are not expected to maintain an inventory of products received and supplied by him.<\/li>\n<li>It is also not bound to maintain and preserve an account containing information of tax payable, tax collected, ITC, etc.<\/li>\n<li>Most other regulations relating to accounts and records shall extend to individuals who have opted for a composition scheme.<\/li>\n<li>In order to file GSTR-4, the registered individual should retain and maintain fair details of the outward supply and inward supply at the rate of tax. It should also be prudent to hold specifics of the invoice for inward supplies and the supplier wise.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Penalties_%E2%80%93\"><\/span><span style=\"color: #000080;\">Penalties: \u2013<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>If the taxable person is not eligible for the scheme of the composition of the GST, the tax authorities may impose a penalty equal to the amount of tax on the taxable person along with his tax liability.<\/p>\n<p>Be patient while using this scheme and paying taxes. The penalty shall be levied in compliance with the provisions of Section 73 or 74 where a person represents inaccurate information under the composition scheme.<\/p>\n<p>&nbsp;<\/p>\n<\/div>\n<ol>\n<li><strong><u><span style=\"color: #000080;\">What exactly is Form GSTR 4 Annual Return<\/span>:<\/u><\/strong>-Annual GSTR 4 Annual Return for each Financial Year will be submitted by all Composition Taxpayers (w.e.f 01 April 2019).<\/li>\n<li>For those taxpayers who have opted for <a href=\"https:\/\/carajput.com\/gst\/gst-compliances.php\">GST Composition Scheme<\/a> in the new indirect tax regime, the GSTR-4 form is an annual return.<\/li>\n<li>Under the GST composition scheme, taxpayers will be required to file one return for each fiscal year only. The taxpayers will also be required to file CMP-08 for the payment in each qtr of the year. The expected date for each CMP-08 filing is the 18th of every succeeding quarter<\/li>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Who_is_supposed_to_file_Form_GSTR-4_Annual_Return\"><\/span><span style=\"color: #000080;\"><strong><u> Who is supposed to file Form GSTR-4 Annual Return:<\/u><\/strong> <\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ol>\n<p style=\"padding-left: 40px;\">All Composition Dealers who have preferred composition scheme for some time, must file GSTR 4 on a yearly basis from 01.04.2019 on.<\/p>\n<ol>\n<li>Both registration composite taxpayers are required to file a tax return. A taxpayer who opts for a Composition Scheme is required to file GSTR-4, except for &#8211;<span style=\"color: #333399;\">Non-resident taxable citizen<\/span><br \/>\n<span style=\"color: #333399;\">Taxpayers who are eligible to collect TCS<\/span><br \/>\n<span style=\"color: #333399;\">Distributors of Input Operation<\/span><br \/>\n<span style=\"color: #333399;\">Taxpayers liable to deduct TDS<\/span><br \/>\n<span style=\"color: #333399;\">Composing taxable citizen<\/span><br \/>\n<span style=\"color: #333399;\">OIDAR Suppliers (Online Information and Database Access or Retrieval)<\/span><\/li>\n<li><span style=\"color: #000080;\"><strong><u>May Nil GSTR 4 Annual report filed<\/u><\/strong><\/span>: you can register the report of Zero for the financial year if you have:<\/li>\n<\/ol>\n<ul>\n<li>NOT made any outward supply<\/li>\n<li>NOT received any goods\/services<\/li>\n<li>Have NO other liability to report<\/li>\n<li>Have filed all Form CMP-08 as Nil<\/li>\n<\/ul>\n<ol start=\"5\">\n<li><span style=\"color: #000080;\"><strong><u>Due date of filing GSTR 4 &amp; GST CMP-08 Payment Form:<\/u><\/strong> <\/span>It must be filed by 31\/10\/2020 for FY 2019-20 and the due date for GST CMP 08 Due Date for FY 2020-21<\/li>\n<\/ol>\n<table width=\"547\">\n<tbody>\n<tr>\n<td width=\"331\"><span style=\"color: #000080;\"><strong>Quarterly Period\u00a0<\/strong><\/span><\/td>\n<td width=\"216\"><span style=\"color: #000080;\"><strong>Timeline Dates<\/strong><\/span><\/td>\n<\/tr>\n<tr>\n<td width=\"331\">1st Quarter \u2013 April to June 2020<\/td>\n<td width=\"216\">18th July 2020<\/td>\n<\/tr>\n<tr>\n<td width=\"331\">2nd Quarter \u2013 July to September 2020<\/td>\n<td width=\"216\">18th October 2020<\/td>\n<\/tr>\n<tr>\n<td width=\"331\">3rd Quarter \u2013 October to December 2020<\/td>\n<td width=\"216\">18th January 2021<\/td>\n<\/tr>\n<tr>\n<td width=\"331\">4th Quarter \u2013 January to March 2021<\/td>\n<td width=\"216\">18th April 2021<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<ul>\n<li><span style=\"color: #000080;\">R<strong><u>equired to file Form GSTR-4 Annual return:<\/u><\/strong> <\/span>Click on Services-Return-Annual Return-Select FY 2019-20-Search-GSTR 4- File Return to login into your dashboard.<\/li>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Process_step_to_be_taken_care_of_during_the_filling_of_GSTR_4\"><\/span><span style=\"color: #000080;\"><strong><u> Process step to be taken care of during the filling of GSTR 4:<\/u><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<li>\n<p><figure id=\"attachment_8331\" aria-describedby=\"caption-attachment-8331\" style=\"width: 550px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/09\/GSTR4-1-1024x576-1.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-8331\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/09\/GSTR4-1-1024x576-1-1024x576.jpg\" alt=\"www.carajput.com;GST GSTR4\" width=\"550\" height=\"309\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/09\/GSTR4-1-1024x576-1.jpg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/09\/GSTR4-1-1024x576-1-300x169.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/09\/GSTR4-1-1024x576-1-768x432.jpg 768w\" sizes=\"(max-width: 550px) 100vw, 550px\" \/><\/a><figcaption id=\"caption-attachment-8331\" class=\"wp-caption-text\">www.carajput.com; GST GSTR4<\/figcaption><\/figure><\/li>\n<li>The File key is only activated if:<\/li>\n<li>No additional cash is required for liabilities<\/li>\n<li>You tapped on the checkbox for the declaration<\/li>\n<li>You picked the approved signatory information from the drop-down list<\/li>\n<li>The surplus balance paid by GST CMP-08, which is included in the derogatory declaration of responsibility, will also be added to liabilities if any.<\/li>\n<li>If the available balance in the electronic cash ledger is less than the amount needed to cover the liabilities, you can directly generate the voucher by clicking on the Build CHALLAN button.<\/li>\n<li>Taxes and late payments are drawn up automatically in Table-8, but interest is the feedback of the customer. Liabilities can only be discharged by an automated cash ledger.<\/li>\n<li>The inward supply data (from Table 4B, 4C, and 4D for each tax rate) will be auto-drawn in Table-6 only after the Taxpayer has pressed the &#8216;Continue to register&#8217; button. The balance before that is shown as &#8216;0&#8217; (zero)<\/li>\n<li>After entering outward supply information in Table-6 and pressing the &#8220;Proceed to register&#8221; button, RCM-based liability is auto-populated from the details provided in Table 4B, 4C, and 4D. Table-6 indicates then the gross tax obligation<\/li>\n<li>The taxpayer has to enter the descriptions of the outward supplies in Table-6 (Row 12-16) of GSTR-4 manually.<\/li>\n<li>Overview of self-assessed liability is auto-populated on the basis of filed Form CMP-08 in Table-5 of the GSTR-4 Annual Return &amp; is uneditable.<\/li>\n<li>The GST amount in Table-4 of GSTR-4 is basically auto calculation made on the input of the values fed in Taxable Value and tax rate fields. However, the GST amount is editable in the table. The CESS shall be paid by the taxpayer.<\/li>\n<li>The cumulative revenue is expected to be entered over the last year and if there is no sale or revenue in the last year of the company or if it is not registered, it could be zero.<\/li>\n<li>The annual GSTR 4 return submission will be triggered after the taxpayer has completed the filing of all quarters of the CMP-08 for that fiscal year.<\/li>\n<\/ul>\n<p>Note: <a href=\"https:\/\/www.gst.gov.in\/newsandupdates\/read\/392\">Point to be considered while using offline Tool<\/a><\/p>\n<ol start=\"8\">\n<li>\n<h3><span class=\"ez-toc-section\" id=\"A_few_Important_points_to_consider_before_filing_GSTR_4\"><\/span><span style=\"color: #000080;\"><strong><u> A few Important points to consider before filing GSTR 4:<\/u><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ol>\n<ul>\n<li>Form GSTR 4 can be filed only if, all applicable quarterly statements in Form CMP 08 of that financial year, have been filed.<\/li>\n<li>Form GSTR-4 Annual Return, once filed, can\u2019t be revised<\/li>\n<li>After successfully filing, ARN will be generated and intimated through email and SMS<\/li>\n<li>Currently, only online filing has been enabled on the portal. Shortly, an offline tool to file Form GSTR-4 Annual Return will also be made available.<\/li>\n<\/ul>\n<ol start=\"9\">\n<li>\n<h3><span class=\"ez-toc-section\" id=\"New_updates_in_Form_GSTR_4_%E2%80%93\"><\/span><strong><u><span style=\"color: #000080;\"> New updates in Form GSTR 4<\/span> &#8211;\u00a0<\/u><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ol>\n<p style=\"padding-left: 40px;\"><u> <\/u>Current features of GSTR 4 Return Form<\/p>\n<ul>\n<li>The <a href=\"https:\/\/carajput.com\/gst\/gst-return.php\">GSTR 4 annual return<\/a> due date has been extended again until 31 October 2020 for the year 2019-20 Read more<\/li>\n<li>Let us understand how to create use offline techniques to plan Form GSTR 4 Annual Composition Taxpayer Return. The GST platform has created an offline excel tool for all tax-paying citizens to help them obtain their GSTR 4 annual return form<\/li>\n<li>GSTR 4 Returns shall be filed on an annual basis for compounding taxable individuals. The last date of filing of the GSTR-4 (CMP-08) payment form is the 18th of the month following the section. GSTR 4 (CMP-08) returns may be filed on 18 April, 18 July, 18 October, and 18 January, and so on.<\/li>\n<li>GSTR \u2013 4 The form is submitted by all taxpayers enrolled under the composition scheme.<\/li>\n<li>Business enterprises listed under the composition system would be expected to pay tax at fixed rates on a regular basis without the use of an input tax credit facility.<\/li>\n<li>The taxpayer would be allowed to show the overall amount of products purchased over a given time and the tax collected at the composition rate<\/li>\n<\/ul>\n<ol start=\"10\">\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Annual_Return_Form_GST-4_Available_on_the_GST_Server\"><\/span><strong><strong><u><span style=\"color: #000080;\"> Annual Return Form GST-4 Available on the GST Server.<\/span><\/u><\/strong><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><figure id=\"attachment_8332\" aria-describedby=\"caption-attachment-8332\" style=\"width: 781px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/09\/GSTR-4-1024x576-1.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-8332\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/09\/GSTR-4-1024x576-1-1024x576.jpg\" alt=\"www.carajput.com;GST GSTR4\" width=\"781\" height=\"438\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/09\/GSTR-4-1024x576-1.jpg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/09\/GSTR-4-1024x576-1-300x169.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/09\/GSTR-4-1024x576-1-768x432.jpg 768w\" sizes=\"(max-width: 781px) 100vw, 781px\" \/><\/a><figcaption id=\"caption-attachment-8332\" class=\"wp-caption-text\">www.carajput.com; GST GSTR4<\/figcaption><\/figure><\/li>\n<\/ol>\n<p>Currently, the GSTN has agreed to encourage residents, assessors, and companies to file GSTR 4 on an annual basis. This has been achieved because of the community&#8217;s demand.<\/p>\n<p>The form is also available on the site, which further eased the assessment and the taxpayers in identifying and submitting the form as per their approval.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"More_read_Key_points_of_42nd_GST_council_Meeting_headed_By_FM_N_Sitharaman\"><\/span><span style=\"color: #0000ff;\"><strong><a style=\"color: #0000ff;\" href=\"https:\/\/carajput.com\/blog\/key-points-of-42th-gst-council-meeting-headed-by-fm-n-sitharaman\/\" data-cke-saved-href=\"https:\/\/carajput.com\/blog\/key-points-of-42th-gst-council-meeting-headed-by-fm-n-sitharaman\/\">More read Key points of 42nd GST council Meeting headed By FM N. Sitharaman<\/a><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"color: #000080;\"><strong><u>11. Recent Council GST Meeting with regard to for Composition Traders<\/u><\/strong><\/span><\/p>\n<ul>\n<li>GSTR 4 return is required to be submitted on a quarterly basis instead of on a quarterly basis with the tax paid on a quarterly basis.<\/li>\n<li>The GST Council expanded the annual turnover cap to 1.50 Crores, effective from 1 April 2019.<\/li>\n<li>GST threshold of 6% relevant to the Composition Scheme for service providers and sales of up to 50 lakh per year<\/li>\n<li>Note: The aforementioned changes shall be taken following the official notification of the govt.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"12_Does_the_GSTR_4_be_revised\"><\/span><span style=\"color: #000080;\"><strong><u>12. Does the GSTR 4 be revised?<\/u><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>After filing on the GSTN Site, GSTR-4 can not be updated.<\/p>\n<p><span style=\"color: #000080;\"><strong><u>13. Is there a penalty for the late filing of GSTR 4?<\/u><\/strong><\/span><\/p>\n<p>A delayed fee of Rs. 200 per day shall be charged if the GSTR-4 is not filed within the due date. The cumulative late fee can not, nevertheless, exceed Rs. 5,000.<\/p>\n<p><span style=\"color: #000080;\"><strong><u>14. The basic term normally used in GSTR 4<\/u><\/strong><\/span><\/p>\n<ul>\n<li>SAC \u2013 Services Accounting Code<\/li>\n<li>B2C \u2013 From registered person to unregistered person<\/li>\n<li>UQC \u2013 Unit Quantity Code<\/li>\n<li>POS \u2013 Place of Supply of Goods and Services<\/li>\n<li>GSTIN \u2013 Goods and Services Taxpayer Identification Number<\/li>\n<li>UIN \u2013 Unique Identification Number<\/li>\n<li>HSN \u2013 Harmonised System of Nomenclature<\/li>\n<li>B2B \u2013 From one registered person to another registered person<\/li>\n<\/ul>\n<h4><span class=\"ez-toc-section\" id=\"Going_to_conclude\"><\/span><span style=\"color: #000080;\"><strong>Going to conclude<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>Any person who opts for the Gst Composition Scheme shall be deemed to have opted for all places of business having the same registered PAN. Therefore you cannot want any of the places of business to be registered under the scheme.<\/p>\n<h3 data-start=\"154\" data-end=\"200\"><span class=\"ez-toc-section\" id=\"GSTR-3A_Notices_issued_to_cancelled_Composition_Taxpayers_for_non-filing_of_GSTR-4\"><\/span><span style=\"color: #000080;\"><em data-start=\"214\" data-end=\"298\">GSTR-3A Notices issued to cancelled Composition Taxpayers for non-filing of GSTR-4 (<\/em><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h3 data-start=\"154\" data-end=\"200\"><span class=\"ez-toc-section\" id=\"GSTN_Advisory_%E2%80%93_Dated_20th_July_2025\"><\/span><span style=\"color: #000080;\"><strong data-start=\"158\" data-end=\"198\">GSTN Advisory \u2013 Dated 20th July 2025 )<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p data-start=\"300\" data-end=\"318\">GST Issue:\u00a0Some taxpayers whose GST registration under the Composition Scheme was cancelled have reported receiving notices in Form GSTR-3A for non-filing of GSTR-4, even though they are no longer active.<\/p>\n<p data-start=\"526\" data-end=\"552\">GST Dept Clarification:GSTN has clarified that Form GSTR-4 is required to be filed for the financial year in which cancellation took place, irrespective of the date of cancellation. For example, if a taxpayer\u2019s registration was cancelled on 30th September 2024, they are still required to file GSTR-4 for FY 2024\u201325. Failure to do so will trigger the issuance of notice in GSTR-3A.<\/p>\n<h3 data-start=\"944\" data-end=\"972\"><span class=\"ez-toc-section\" id=\"Taxpayers_who_have_received_GSTR-3A_notices_should\"><\/span><span style=\"color: #000080;\">Taxpayers who have received GSTR-3A notices should\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p data-start=\"1031\" data-end=\"1087\">Verify if GSTR-4 for the relevant FY has been filed. If not filed, they must immediately file GSTR-4 to avoid late fees and further legal action. If already filed and notice received in error, taxpayers may contact GST Helpdesk or raise a grievance through the GST Portal.\u00a0The rules of the Gst Composition Scheme under the GST were supposed to be strict and strict for the individuals using the Composition Scheme.<\/p>\n<p><span style=\"color: #000080;\"><strong>Popular blog:-\u00a0<\/strong><\/span><\/p>\n<p><span style=\"color: #000080;\"><strong><a style=\"color: #000080;\" href=\"https:\/\/carajput.com\/learn\/salient-features-of-new-proposed-gst-system-in-india.html\" data-cke-saved-href=\"https:\/\/carajput.com\/learn\/salient-features-of-new-proposed-gst-system-in-india.html\">SALIENT FEATURES OF NEW GST SYSTEM IN INDIA<\/a><\/strong><\/span><\/p>\n<p><span style=\"color: #000080;\"><strong><a style=\"color: #000080;\" href=\"https:\/\/carajput.com\/blog\/key-points-of-42th-gst-council-meeting-headed-by-fm-n-sitharaman\/\" data-cke-saved-href=\"https:\/\/carajput.com\/blog\/key-points-of-42th-gst-council-meeting-headed-by-fm-n-sitharaman\/\">Key points of 42nd GST council Meeting headed By FM N. Sitharaman<\/a><\/strong><\/span><\/p>\n<p><span style=\"color: #000080;\"><strong><a style=\"color: #000080;\" href=\"https:\/\/carajput.com\/blog\/gstn-enable-details-to-be-auto-populated-in-e-invoice-into-gstr-1\/\" data-cke-saved-href=\"https:\/\/carajput.com\/blog\/gstn-enable-details-to-be-auto-populated-in-e-invoice-into-gstr-1\/\">GSTN enable auto-populated in the E-invoice information into GST Return -1<\/a><\/strong><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>KEY TAKEAWAYS OF GST COMPOSITION SCHEME What&#8217;s the GST COMPOSITION SCHEME? The GST Composition Scheme is designed for small taxpayers to reduce the burden of tax enforcement. Small taxpayers do not need to file monthly GST returns, and they need to pay marginal GST at a fixed turnover rate. Any company with an annual turnover &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[172],"tags":[9221,9474,9222,9218,9223,9225],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/8183"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=8183"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/8183\/revisions"}],"predecessor-version":[{"id":31561,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/8183\/revisions\/31561"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=8183"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=8183"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=8183"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}