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GSTR-4 Filing Services – N D Savla & Associates
GST Compliance

GSTR-4 Filing Services
Composition Scheme Annual Return, CMP-08 Reconciliation & Negative-Liability Correction

Complete GSTR-4 filing for composition dealers — CMP-08 quarterly reconciliation, composition eligibility assessment, annual return preparation, outward supply and reverse charge reporting, negative liability statement correction, late fee management, and Nil GSTR-4 filing for small traders, manufacturers, restaurants, and special-scheme service providers.

Part of our GST practice: GST Compliance GST Registration GST Return Filing GST Reconciliation

Overview

Why GSTR-4 Filing Needs Care

GSTR-4 is the annual GST return that every composition scheme dealer must file. It consolidates the entire financial year's outward supplies, inward supplies, reverse charge liabilities, import of services, and taxes paid through the quarterly CMP-08 statements. The composition scheme replaces the regular monthly and quarterly cycle with a much simpler structure — CMP-08 each quarter and GSTR-4 once per year.

GSTR-4 cannot be revised once filed, which makes pre-filing accuracy critical — any error in outward supplies, reverse charge, tax computation, or CMP-08 reconciliation becomes locked at submission. It also cannot be filed until all applicable CMP-08 statements for the year are filed, and the late fee applies even to a Nil GSTR-4 where the dealer had no transactions.

N D Savla & Associates handles the complete CMP-08 to GSTR-4 cycle — composition eligibility confirmation, CMP-08 quarterly review, outward and inward supply compilation, reverse charge reporting, CMP-08 to GSTR-4 reconciliation, electronic cash ledger reconciliation, the negative liability statement correction that frequently affects composition dealers, late fee and interest computation, Nil GSTR-4 filing, and composition-to-regular scheme transition advisory. Our practice connects with the wider GST compliance framework and coordinates with GST registration, GST return filing, and GST audit.

The composition scheme trades simplicity and a lower effective rate for the loss of input tax credit — the dealer pays a concessional fixed rate on turnover, issues bills of supply, and cannot claim credit on purchases or pass it to customers. Because the choice between composition and the regular scheme depends on the business profile, we model both options before recommending the composition route, so the decision gets a careful upfront analysis.

Common Composition-Dealer Profiles

Which Dealers Must File GSTR-4?

GSTR-4 is mandatory for every composition taxpayer during the year, but the business type, turnover, and compliance history change the approach in these common situations.

Small Trader or Retailer Within the Limit

First annual GSTR-4 after opting in through CMP-02 — full-year reconciliation, eligibility confirmation, and timely filing before the due date.

Restaurant Under Composition

Four CMP-08 quarters consolidated into the annual return — the correct restaurant composition rate and outward supply compilation from bills of supply.

Small Manufacturer with Reverse Charge

Composition manufacturer with inward supplies under RCM — the reverse charge table and electronic cash ledger reconciliation for the year.

Special-Scheme Service Provider

Service or mixed supplier within the lower turnover limit — the service-provider composition rate and careful turnover-threshold verification.

Dealer Who Exited Composition Mid-Year

Cancelled or opted out during the year — part-year GSTR-4 for the applicable period with complete CMP-08 reconciliation.

Dealer with a Negative Liability or Backlog

Carried-forward negative balance or pending returns — CMP-08 reconciliation, GST helpdesk correction, accumulated late fee computation, and backlog clearance.

Our Services

Our GSTR-4 Filing Services

Our practice follows a structured eight-step workflow — eligibility confirmation, CMP-08 quarterly review, outward and inward supply compilation, CMP-08 to GSTR-4 reconciliation, cash ledger reconciliation, pre-filing review, and filing. The six service blocks below cover the end-to-end engagement.

01

Composition Eligibility & CMP-02 Opt-In

We confirm the composition scheme eligibility by testing the aggregate turnover against the prescribed limit — with a lower limit for special category states and special-scheme service providers — and checking the excluded-category list (such as makers of ice cream, pan masala, and tobacco). For dealers shifting from the regular scheme we coordinate the CMP-02 opt-in before the start of the financial year, and we monitor the running turnover so a mid-year breach triggers the mandatory transition rather than a wrong continued filing.
Composition Turnover Limit · CMP-02
02

CMP-08 Quarterly Review & the Mandatory Sequence

CMP-08 is the quarterly statement-cum-challan for self-assessed composition tax — purely a payment mechanism, not a detailed return. We review all four CMP-08 statements for the year and confirm each was filed correctly, because the portal enables the GSTR-4 filing button only after all CMP-08 statements are filed. The strict sequence is CMP-08 each quarter, then GSTR-4 after year-end, so we validate the quarterly payment record before initiating the annual return.
CMP-08 – Statement-cum-Challan
03

Outward, Inward & Reverse Charge Compilation

We compile the total outward supplies for the year from the dealer's books, bills of supply, and sales records to establish the annual turnover, then compile the inward supplies and identify the reverse charge liabilities payable by the composition dealer on specified inward supplies. Because the scheme is built on the no-input-tax-credit principle — GSTR-4 has no ITC claim table like GSTR-3B — we confirm the no-ITC framework with every client at the outset.
Bill of Supply · RCM
04

CMP-08 to GSTR-4 & Cash Ledger Reconciliation

We reconcile the auto-populated CMP-08 quarterly figures against the compiled annual summary and reconcile the electronic cash ledger balance to confirm that the tax paid through CMP-08 matches the annual liability. This step is where mismatches that would create a negative liability are caught and resolved before filing, so the year's payments and the year's actual liability reconcile cleanly.
Electronic Cash Ledger
05

Negative Liability Statement Correction

The negative liability issue arises where the tax paid through CMP-08 is not correctly reflected against the GSTR-4 annual liability — typically where the dealer entered the liability in CMP-08 but skipped the corresponding outward supply details — causing the portal to show a negative balance that can carry forward and create recurring reconciliation problems. We reconcile the figures, raise the correction with the GST helpdesk where needed, and ensure the cash ledger and liability ledger reconcile accurately year over year.
Negative Liability Ledger
06

Pre-Filing Review, Filing & Late-Fee Management

Because GSTR-4 cannot be revised after filing, we perform a careful pre-filing review of outward supplies, inward supplies, reverse charge, tax computation, and ledger balances, then file the annual return before the due date and preserve the acknowledgement — including the Nil GSTR-4 for dormant dealers, since the late fee applies even with no activity. Where a default has occurred, we compute the exact accumulated late fee (subject to the prescribed cap), reconcile any missed CMP-08 statements, and clear the backlog. Our GST notice service handles any consequential notice.
No Revision After Filing

Broader Practice

Our Broader GST & Small-Business Services

GSTR-4 filing sits inside a wider compliance map for small business. Our complete practice covers:

GST ComplianceHub for all GST services.
GST RegistrationNew GST registration and composition opt-in.
GST Return FilingRegular GST return filing.
GSTR-3B FilingMonthly summary return for regular dealers.
GSTR-9 Annual ReturnAnnual return for regular taxpayers.
GST ReconciliationBooks to GST returns reconciliation.
Reverse Charge MechanismRCM compliance framework.
GST NoticeGST notice response.
MSME RegistrationUdyam registration for small business.
Professional TaxState professional tax.
Accounting & BookkeepingBooks maintenance for small business.
Business RegistrationEntity setup services.

Frequently Asked Questions

Common Questions on GSTR-4 Filing

What is GSTR-4 and who needs to file it?
GSTR-4 is the annual GST return that every composition scheme taxpayer must file. It consolidates the full financial year's outward supplies, inward supplies, reverse charge liabilities, and taxes paid through the quarterly CMP-08 statements. Composition dealers (small traders, manufacturers, restaurants within the prescribed turnover limit) and special-scheme service providers must file it once per year. Even dealers who cancelled registration or exited composition mid-year must file for the applicable period. Our GST compliance page covers the broader GST framework.
What is the difference between CMP-08 and GSTR-4?
CMP-08 and GSTR-4 are two distinct forms and a composition dealer must file both. CMP-08 is a quarterly statement-cum-challan for paying self-assessed composition tax each quarter. GSTR-4 is the annual return filed once after year-end, consolidating all four CMP-08 quarters with the year's complete supply and tax summary. The CMP-08 figures auto-populate into GSTR-4. GSTR-4 cannot be filed until all applicable CMP-08 statements are filed. Our GST return filing page covers the full return cycle.
When is the GSTR-4 due date?
GSTR-4 is filed annually after the financial year ends. The GST Council extended the GSTR-4 due date to the thirtieth of June following the relevant financial year for recent years onward, giving composition dealers more time to reconcile their quarterly CMP-08 statements. The CMP-08 quarterly statement follows its own separate due date after each quarter. Our team always confirms the current notified due date before scheduling the filing. Our GST registration page covers composition opt-in timing.
Can a composition dealer claim input tax credit in GSTR-4?
No, input tax credit is not available to composition scheme dealers. This is a defining feature of the scheme. The composition dealer pays GST at a fixed concessional rate on turnover but cannot claim credit on purchases and input services. GSTR-4 has no ITC claim table like the regular GSTR-3B. The composition dealer issues bills of supply, cannot collect GST separately from customers, and cannot pass ITC to them. Our GSTR-3B filing page covers the regular-scheme ITC mechanism.
What is the negative liability statement issue in GSTR-4?
The negative liability statement issue arises where the tax paid through quarterly CMP-08 statements is not correctly reflected against the annual liability in GSTR-4 — causing the portal to show a negative balance. This typically happens where the dealer entered tax in CMP-08 but skipped the corresponding outward supply details in GSTR-4. The negative balance can carry forward and create reconciliation problems. Our team reconciles CMP-08 with GSTR-4 and raises corrections with the GST helpdesk. Our GST reconciliation page covers reconciliation services.
What happens if GSTR-4 is not filed on time?
Failure to file GSTR-4 by the due date triggers a per-day late fee that accumulates until filing, subject to a prescribed maximum cap. The late fee applies even to a Nil GSTR-4. Beyond the late fee, non-filing can lead to notices, blocked subsequent filings, composition eligibility issues, and e-way bill restrictions. The portal calculates the late fee automatically. Our team tracks every due date and clears backlogs efficiently. Our GST notice page covers notice response.
Can GSTR-4 be revised after filing?
No, GSTR-4 cannot be revised once filed. This makes pre-filing accuracy critical. Any error in outward supply figures, inward supply details, reverse charge, tax computation, or CMP-08 reconciliation becomes locked at submission. An incorrect filing can create negative liability and reconciliation problems that carry into future years. Because there is no revision facility, our team follows a careful pre-filing review process to ensure the GSTR-4 is correct the first time. Our GST audit page covers compliance review.

Need GSTR-4 Filing? Talk to Our GST Team.

End-to-end GSTR-4 filing for composition dealers, small traders, manufacturers, restaurants, and special-scheme service providers — composition eligibility confirmation, CMP-08 review, outward and reverse charge compilation, negative-liability prevention, cash ledger reconciliation, pre-filing review, and timely filing, delivered by qualified Chartered Accountants.

Get in Touch
📞 +91 98190 00511 · +91 91670 58000 · +91 98190 00445
✉ nainitsavla@savlagroup.in · 📍 N D Savla & Associates, Mumbai

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