The GSTR-4 Annual Return is a return filed by taxpayers who have opted for the Composition Scheme under GST in India. This scheme is designed to simplify tax compliance for small taxpayers with a turnover of up to Rs. 1.5 crores (Rs. 75 lakhs for certain states). Under the Composition Scheme, taxpayers pay a fixed percentage of their turnover as tax and cannot claim input tax credit (ITC). The GSTR-4 Annual Return is filed once every year by Composition Scheme taxpayers, by the 30th of April of the following financial year.

This return contains details such as the taxpayer’s turnover, tax liability, tax paid, and any advances paid or received during the year. It also includes information on purchases made from unregistered suppliers and the tax paid on such purchases. The GSTR-4 Annual Return is a simplified return that aims to reduce the compliance burden on small taxpayers. However, it is crucial for taxpayers to file the return accurately and on time to avoid penalties or legal action by the government. In case of any discrepancies or errors in the return filed, taxpayers must file a revised return within a specified period.