GSTR-4 deadline has been extended to October 31, 2020

Last date to file GSTR-4 gets an extension up to October 31 2020

The Central Board of Indirect Taxes and Customs (CBIC) has once again extended the final date to file the annual return. Form GSTR-4 deadline has been extended from August 31, 2020, to October 31, 2020. The return applies to the citizens enlisted anytime under the composition scheme from FY 2019-20. The due date was July 15, 2020, which was first extended to August 31, 2020. Presently taxpayers will get two additional months to file the return.

Due to the pandemic, composition taxpayers are unable to file their annual return on time. So, keeping this in mind, GSTR-4 deadline has been extended by the government. The GST Act requires the citizens to document this return on or before April 30 of the year following the relevant financial year or on or before the extended date of filing the return declared by the government.

The facility to file the GSTR – 4 return was introduced on the GST portal on July 21, 2020. The portal also witnessed the introduction of an offline tool in order to prepare a few tables of GSTR– 4 without using the internet on August 6, 2020. The return is quite simple in comparison with the annual return filed by the regular taxpayers i.e., GSTR-9. However, a short duration was allotted to the taxpayers to get familiar with the new facility. According to the form CMP – 08 filed during the relevant financial year, GSTR-4 (annual return) has four tables out of which just one table is auto-populated during the pertinent money related year.

In the midst of this extension, the taxpayers are additionally questioning the late fee charges imposed on them. Right now, the late fee is being continuously imposed on the composition taxpayer. It is Rs 200 every day of deferral up to a limit of Rs 5,000 for the late documenting of CMP-08. As the late fee is not shown on the system, a composition taxpayer is forced to register and pay the amount.  Many taxpayers have additionally scrutinized the need to proclaim purchase subtleties compulsorily while not being permitted to claim any input tax credit. The purchase details consist of inward supplies attracting reverse charge, inward supplies from GST unregistered persons, inward supplies from GST registered persons, and import of services, classified according to the GSTIN/PAN.

The issue that restricts the taxpayers is that there is no option to make changes in the GSTR-4 return once documented. Consequently, citizens are reluctant to continue, particularly where there are some specialized disparities on the GST portal while filing the return. The tech group of GSTN required extra time to amend such issues. In addition, citizens must be cautious while revealing the annual turnover in the GSTR-4 form. The figure declared in the Income Tax Return and as well as the GSTR – 4 forms should be the same, as a slight difference in both the figures can create a lot of trouble for the taxpayers. Thus, an extension of two months was necessary.

The GSTR-4 return at first must be recorded every quarter along with the payment of GST liability. The citizens confronted pointless issues of examining and announcing data of deals and internal supplies on reverse charge around each quarter. Rather, another and improved challan-cum-proclamation in the form CMP-08 was introduced to fill the shoes. From that point onward, GSTR-4 has become a yearly illicit relationship since FY 2019-20.

GSTR-4 used to be a quarterly return till FY 2018-19, before being changed over into annual return from FY 2019-20 by the Central Board of Indirect Taxes and Custom (CBIC).  Under the plan, manufacturers and traders have to pay GST at the pace of 1 percent, while eateries (which don’t serve liquor) need to pay GST at a 5 percent rate.


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