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What is GSTR-4 , Late fees and interest?

 What is GSTR-4?

GSTR-4 is the annual GST Return that has to be filed by a composition dealer. Unlike a regular taxpayer who is required to furnish 2 monthly returns and an annual return (with certain exemptions), a dealer opting for the composition scheme is required to furnish one return every quarter in Form CMP-08 and Form GSTR 4 once a year by the 30th day of April, following the financial year.

Late fees under GST as per latest notification

Note that the maximum late fees have been rationalised from the month of June 2021 and quarter ending June 2021.

As per the 43rd GST Council meeting’s outcome, maximum late fee is reduced to the following amounts based on type of return and turnover slab, notified via the CGST notifications 19/2021, 20/2021,21/2021 dated 1st June 2021 for GSTR-3B and GSTR-1.

Name of the return Type of returnAnnual turnover in previous yearMaximum late fee under CGSTMaximum late fee under SGSTMaximum late fee
GSTR-1 and GSTR-3BNil returnNARs 250Rs 250Rs 500
Other than Nil returnUpto Rs.1.5 croreRs.1,000Rs.1,000Rs.2,000
Between Rs.1.5 crore and Rs.5 croreRs. 2,500Rs. 2,500Rs. 5,000
More than Rs.5 croreRs. 5,000Rs. 5,000Rs. 10,000
GSTR-4 
(FY 21-22 onwards)		Nil returnNARs 250Rs 250Rs 500
Other than Nil returnNARs.1,000Rs.1,000Rs.2,000
GSTR-7
(TDS filing under GST)		NANARs.1,000Rs.1,000Rs.2,000

Further, according to CGST notification 22/2021 dated 1st June 2021, the late fee chargeable for GSTR-7 is reduced from Rs.200 to Rs.50 per day of delay, per act, per return.

Legal Consequences and Penalty of Not Filing GSTR-4 Before the Due Date?

Penalty

In accordance with the latest update, a late fee of Rs. 50 per day is imposed, up to a maximum of Rs. 2,000. If there is no tax liability, the maximum late charge is Rs. 500.

Previously, a late fee of Rs. 200 per day was charged for late filing of GSTR-4. The maximum late fee was capped at Rs. 5,000.

  • Interest Charges: Interest will be levied at a rate of 18% per annum on the outstanding tax liability.
  • Legal Consequences: Continuous non-compliance may result in legal actions, including tax recovery and cancellation of GST registration.

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           (The views expressed in this article are strictly personal.)

            By  GST Info Tamil

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