GSTR-4 is the annual return filed by taxpayers registered under the GST composition scheme, summarising the quarter-wise tax paid through CMP-08 during the financial year along with turnover and other details. It is filed once a year on the GST portal, unlike the monthly or quarterly cadence of regular taxpayers, and it consolidates figures that were already paid through the year rather than introducing new tax calculations. This guide explains who must file it, what it contains, and how to file it correctly.
What Is GSTR-4?
GSTR-4 is the annual return that composition scheme taxpayers file to summarise their turnover, tax paid and other particulars for the financial year. Composition taxpayers pay tax quarterly through a simplified statement called CMP-08, and GSTR-4 is the yearly consolidation of those quarterly payments rather than a fresh set of monthly filings. Because it is annual, missing it is easy to overlook until a late fee or portal notice brings it to attention.
Who Must File GSTR-4?
Any taxpayer registered under the composition scheme for the financial year, or for part of it, is generally required to file GSTR-4 for that year. The composition scheme itself is available to taxpayers whose turnover stays within a limit notified by the government, and that limit differs by category of business and has been revised over time.
| Taxpayer type | General GSTR-4 position |
|---|---|
| Registered under composition scheme for the full year | Files one annual GSTR-4 covering all four quarters |
| Opted into composition scheme mid-year | Files GSTR-4 for the period from the date the scheme became effective |
| Opted out of composition scheme mid-year | Typically files GSTR-4 for the composition period and switches to regular returns after opting out |
| Regular (non-composition) taxpayer | Does not file GSTR-4; regular taxpayers use GSTR-1 and GSTR-3B instead |
Composition scheme turnover limits vary by state and business category and have changed in the past, so verify the current eligibility limit on the GST portal before assuming a business qualifies.
What Information Does GSTR-4 Require?
GSTR-4 pulls together a full year of composition trading activity into a single return. The main components are summarised below.
| Section | What it covers |
|---|---|
| Outward supplies summary | Aggregate turnover for the financial year, including exempt and taxable supplies |
| Inward supplies from registered and unregistered persons | Purchases during the year, relevant for the reverse charge and ITC-related disclosures that apply to composition dealers |
| Tax paid summary | Consolidation of tax paid across the four CMP-08 statements filed during the year |
| Amendments | Corrections to figures reported in earlier CMP-08 statements for the same year |
| Late fee, if any | Auto-computed by the portal based on the delay in filing |
How Do You File GSTR-4 Step by Step?
- Gather the four quarterly CMP-08 statements filed during the financial year and confirm the tax paid against each.
- Reconcile total turnover for the year against your sales records, including any supplies through e-commerce operators.
- Log in to the GST portal and open the GSTR-4 annual return for the relevant financial year.
- Confirm the auto-populated tax-paid summary against your own CMP-08 records and correct any discrepancy.
- Enter inward supply and other required particulars for the year.
- Review the summary, pay any additional liability that the return computes, and file with a digital signature or EVC as applicable.
How Is CMP-08 Related to GSTR-4?
Composition taxpayers deal with two different filings during the year, and confusing them is a common source of missed deadlines.
| Aspect | CMP-08 | GSTR-4 |
|---|---|---|
| Frequency | Quarterly | Annual |
| Purpose | Self-assessed statement to pay tax for the quarter | Annual return consolidating the year's turnover and tax paid |
| Nature | A payment statement, not a full return | A complete annual return with detailed particulars |
| Relationship | Feeds into the annual figures | Summarises all four CMP-08 statements for the year |
What Mistakes Should Composition Dealers Avoid?
| Mistake | Why it happens | How to avoid it |
|---|---|---|
| Turnover mismatch between CMP-08 and GSTR-4 | Sales corrected in books after a CMP-08 statement was already filed | Reconcile books to CMP-08 figures each quarter, not only at year-end |
| Missing e-commerce sales | Marketplace sales tracked separately from own-book sales | Consolidate marketplace and direct sales into one turnover figure before filing |
| Filing GSTR-4 despite opting out mid-year | Unclear on which period the composition scheme applied | Confirm the effective dates of opting in and out on the GST portal before filing |
| Ignoring the annual filing until a late fee appears | Annual cadence makes it easy to forget compared to monthly returns | Set a recurring reminder tied to the financial year-end |
Composition dealers selling through e-commerce platforms should also note that any tax collected at source by the marketplace is reported by the platform separately in GSTR-8, and that filing is unrelated to the composition scheme's own quarterly and annual cycle.
What Records Should You Keep for GSTR-4?
Because GSTR-4 consolidates a full year of composition trading, having the right records ready before filing saves time and reduces the chance of a mismatch notice later.
- Copies of all four CMP-08 statements filed during the financial year, with the tax paid on each.
- A month-wise or quarter-wise sales summary covering both direct sales and marketplace sales.
- Purchase records from registered and unregistered suppliers, since these feed into the inward supply disclosures.
- Bank statements for the year, to confirm that recorded sales correspond to actual receipts.
- Any amendment notes for figures corrected after an earlier CMP-08 was filed.
Keeping these records organised through the year, rather than assembling them only when the annual return is due, is what makes GSTR-4 filing straightforward instead of a scramble.
How Can OneBooks GST Help Composition Dealers Stay Ready?
OneBooks GST is a GST and accounting platform for Indian businesses that imports marketplace sales from Amazon, Flipkart, Meesho, Myntra, AJIO and JioMart, along with Excel or CSV uploads, so a composition dealer selling across multiple channels can see consolidated turnover in one place instead of stitching together separate marketplace reports each quarter. This matters directly for GSTR-4, since the return depends on an accurate full-year turnover figure.
OneBooks GST also supports direct invoice entry through its accounting software for dealers who bill customers outside marketplaces, and its bank statement parser turns uploaded bank statement PDFs or Excel files into dated, ledger-mapped transaction rows, which helps confirm that recorded sales match actual receipts before the annual return is filed. While OneBooks GST does not file CMP-08 or GSTR-4 on your behalf, since those are filed directly on the GST portal, keeping a full year of sales data organised in OneBooks GST makes reconciling that data against the four CMP-08 statements considerably faster when the annual return comes due. You can review current plans on the OneBooks GST plans page or reach the support team with specific data questions.
When Is GSTR-4 Due?
GSTR-4 is an annual return and is generally due sometime after the financial year ends, giving composition dealers a window to reconcile the year's figures before filing. This due date has been extended in some years, so treat any specific date as provisional. Confirm the current GSTR-4 due date for the relevant financial year directly on the GST portal rather than relying on a figure from an earlier year.
Frequently Asked Questions
What is GSTR-4?
GSTR-4 is the annual return filed by composition scheme taxpayers, summarising the turnover and tax paid through the year's four CMP-08 statements.
Who is required to file GSTR-4?
Any taxpayer who was registered under the composition scheme for all or part of a financial year is generally required to file GSTR-4 for that year.
Is GSTR-4 the same as CMP-08?
No, CMP-08 is a quarterly self-assessed statement used to pay tax during the year, while GSTR-4 is the single annual return that consolidates all four quarters into one filing.
What happens if a composition dealer opts out mid-year?
A dealer who opts out of the composition scheme mid-year typically still files GSTR-4 for the period the scheme applied, and switches to regular monthly or quarterly GST returns from the date of opting out; confirm the exact treatment on the GST portal for your effective dates.
Does GSTR-4 include e-commerce marketplace sales?
Yes, turnover reported in GSTR-4 should include sales made through e-commerce marketplaces along with direct sales, since the return is meant to capture the dealer's full-year turnover.
Can OneBooks GST file GSTR-4 for a composition dealer?
OneBooks GST does not file GSTR-4 directly, since that filing happens on the GST portal, but it consolidates marketplace and direct sales data through the year, which makes preparing accurate turnover figures for the annual return faster.
