How to File GSTR-4 for Composition Taxpayers

Vikash

30 Mar 2026 • 5 min read

How to file GSTR-4 is a common question for small business owners who have opted for the GST composition scheme. If you are a composition taxpayer, you need to file GSTR-4 once a year to report your turnover and tax details.

The good news is that the process is simple if you follow the right steps. In this guide, we will explain how to file the GSTR-4 return, step by step, in a clear and easy way.

What is GSTR-4?

GSTR-4 is an annual GST return that must be filed by taxpayers registered under the composition scheme.

Key points to know

It is filed once a year.
It includes sales, purchases, and tax payable.
It replaces the earlier quarterly filing system.
The due date is usually 30th April of the next financial year.

If you are searching for how to file the GSTR-4 composition scheme, understanding this basic structure is the first step.

What is the GST Composition Scheme?

The composition scheme under GST is a simple tax option made for small businesses. It allows them to pay tax at a fixed rate on their turnover instead of calculating GST on every sale.

Key Features of the Composition Scheme

Pay tax at a fixed rate (lower than regular GST rates).
File fewer returns (mainly GSTR-4 annually).
Maintain simple records.
Reduced compliance burden.

This makes it easier for small business owners who do not want complex GST calculations.

Who Can Opt for the Composition Scheme?

Small businesses with turnover up to the prescribed limit (usually up to ₹1.5 crore for most states).
Traders, manufacturers, and restaurant owners.
Businesses that deal mostly within India.

Who cannot opt for it?

Businesses involved in interstate sales.
E-commerce sellers (in most cases).
Service providers (except limited categories).
Businesses selling non-taxable goods.

Tax Rates Under the Composition Scheme

Traders: around 1% of turnover.
Manufacturers: around 2% of turnover.
Restaurants: around 5% of turnover.

These rates are lower, which is why many small businesses prefer this scheme.

Limitations You Should Know

Cannot collect GST from customers.
Cannot claim input tax credit (ITC).
Limited business expansion (due to restrictions).

Why It Matters for GSTR-4 Filing

If you opt for this scheme, you must file GSTR-4 every year. That’s why understanding the scheme helps you better learn how to file GSTR 4 for a composition dealer without confusion.

Who Should File GSTR-4?

You must file GSTR-4 if:

You are registered under the composition scheme.
You are a small or micro-sized business.
You pay tax at a fixed rate on turnover.

Composition dealers include

Traders
Manufacturers
Restaurants (non-AC).

If you are wondering how to file GSTR-4 for composition dealers, this return is mandatory even if you have very few transactions.

According to a report by the Comptroller and Auditor General (CAG), over 8.66 lakh composition taxpayers were analyzed using GST return data, showing how widely the composition scheme is used among small businesses in India.

Details Required Before Filing GSTR-4

Before you start filing GSTR-4 on the GST portal, keep these details ready:

GSTIN and login credentials.
Summary of outward supplies (sales).
Summary of inward supplies (purchases).
Tax paid during the year.
Details of imports (if any).

Having this information ready will make GSTR-4 filing much faster and smoother.

Step-by-Step Process: How to File GSTR-4 Online

Let’s understand how to file GSTR-4 online through the GST portal in a simple way.

Step 1: Log in to the GST Portal

Visit the GST portal.
Enter your username and password.
Go to the Dashboard.

Step 2: Navigate to GSTR-4

Click on Returns Dashboard.
Select the financial year.
Choose GSTR-4 (Annual Return).

This is the starting point for filing GSTR-4 on the GST portal.

Step 3: Enter Outward Supplies

Add details of sales made during the year.
Enter total turnover.
Include both taxable and exempt supplies.

This step is important in filing the GSTR-4 return as it defines your tax liability.

Step 4: Enter Inward Supplies

Add details of purchases.
Include purchases from registered and unregistered dealers.
Mention reverse charge transactions (if any).

Step 5: Enter Tax Payable and Paid

The system will auto-calculate tax.
Check tax liability.
Adjust with tax already paid.

This ensures accuracy while learning how to file the GSTR-4 return.

Step 6: Preview the Return

Click on Preview.
Download and check the summary.
Verify all details carefully.

Step 7: File the Return

Click on Proceed to File.
Choose EVC or DSC.
Submit the return.

Once submitted, you have successfully completed filing the composition GSTR-4 latest version.

How to File GSTR-4 Nil Return

If you had no transactions during the year, you still need to file a return.

Steps for how to file a GSTR-4 nil return

Log in to the GST portal.
Select GSTR-4.
Choose the Nil Return option.
Confirm and file using EVC.

This process is quick and takes only a few minutes.

How to File GSTR-4 Offline

Some businesses prefer offline filing. Here’s how to file GSTR-4 offline:

Steps:

Download the GSTR-4 offline utility from the GST portal.
Fill in the required details.
Generate a JSON file.
Upload it to the GST portal.
Verify and submit.

Offline filing is useful if you have limited internet access or large data entries.

Common Mistakes to Avoid While Filing GSTR-4

While filing GSTR-4, avoid these common errors:

Entering wrong turnover details.
Missing purchase entries.
Not checking the tax calculation.
Filing after the due date.
Ignoring nil return requirement.

Fixing these mistakes can save you from penalties.

Late Fees and Penalties

If you delay filing the GSTR-4 return, penalties apply:

₹50 per day (₹25 CGST + ₹25 SGST).
₹20 per day for nil return.
Maximum limit: ₹2,000.

Filing on time is always better to avoid extra costs.

Benefits of Filing GSTR-4 Correctly

Understanding how to file GSTR-4 composition scheme properly offers many benefits:

Keeps your business GST compliant.
Avoids penalties.
Maintains clean financial records.
Builds trust with authorities.

It also helps in better financial planning.

Also check - GSTR-1 vs GSTR-3B vs GSTR-2B

How GimBooks Makes GSTR-4 Filing Easier

For small businesses, managing GST manually can feel confusing. This is where GimBooks helps.

Why use GimBooks?

Easy invoice creation and tracking.
Automatic GST calculations.
Organized financial data.
Mobile-friendly and simple to use.
Designed for small and micro businesses.

With tools like GimBooks, understanding how to file GSTR-4 for a composition dealer becomes much easier because your data is already structured and ready.

Wrapping Up

Learning how to file GSTR-4 is not as hard as it may seem. Once you understand the steps and keep your data ready, the process becomes smooth and quick.

Whether you choose how to file GSTR-4 online or how to file GSTR-4 offline, the key is accuracy and timely submission. Always review your details before filing and avoid common mistakes.

For small and micro businesses, using a simple tool like GimBooks can save time and reduce errors. It helps you stay compliant without stress.

By following this informative blog, you can confidently complete filing the GSTR-4 return and focus more on growing your business.

To know more, explore the GimBooks expert blog section!

Explore more
How to File GSTR 3B Online Without Errors
How to File GSTR 2B
How to File GSTR 1 Online

FAQs

1. What is the due date for GSTR-4 filing?

The due date is usually 30th April of the next financial year.

2. Can I revise GSTR-4 after filing?

No, once filed, GSTR-4 cannot be revised. You must ensure all details are correct before submission.

3. Is GSTR-4 mandatory for all composition dealers?

Yes, every composition dealer must file GSTR-4 annually, even if there are no transactions.

4. How to file GSTR 4 nil return easily?

You can select the Nil Return option on the GST portal and file it quickly using EVC.

5. Can I file GSTR-4 without software?

Yes, you can file it directly on the GST portal. However, tools like GimBooks make the process easier and more accurate.