GSTR-4 Return in composition scheme

Yes. When filing the GSTR-4 Annual Return under the composition scheme, the purchase value you report should be net of any credit notes received—in other words, you must reduce (less) the value of the credit notes from the total purchase value shown in the return.

As a composition scheme taxpayer, GSTR-4 is your annual return. Here is the full picture:

WHAT IS GSTR-4:
- Annual return for composition dealers (regular/manufacturer at 1%, restaurant at 5%, services at 6%)
- Separate from CMP-08 (quarterly challan for paying GST liability)
- Due date: April 30 of the following year (extended sometimes; for FY 2024-25 it was June 30, 2026)

WHAT TO REPORT IN GSTR-4:
- Table 4: Inward supplies received (B2B from registered suppliers, RCM inward, unregistered purchases)
- Table 5: Outward supplies (auto-populated from CMP-08 quarterly filings)
- Table 6: Tax paid summary by rate (turnover x applicable composition rate)
- Table 8: Late fee, interest if any

KEY POINTS:
- ITC is NOT available to composition dealers ,  do not attempt to claim input credit
- RCM (reverse charge) applies to certain inward supplies even for composition dealers (e.g., services from unregistered lawyers, transport under GTA)
- If you missed the deadline, file immediately ,  late fee is Rs 200 per day (Rs 100 CGST + Rs 100 SGST)

For a step-by-step guide on GST annual returns including GSTR-9 for regular taxpayers: https://taxgarden.in/blog/gstr-9-annual-return-filing-guide-fy-2025-26