The 60-second version
Composition dealers file GSTR-4 quarterly and pay tax via CMP-08 — turnover cap ₹1.5 crore for goods, no ITC, and simplified returns for small businesses.
Composition means no ITC — pay tax on turnover
GSTR-4 is the quarterly return for composition scheme dealers — you pay tax at fixed rate on turnover via CMP-08, not on invoice-level GST.
No input tax credit under composition — suitable for small retail, restaurant, or service businesses under threshold.
Regular scheme: GSTR-3B QRMP guide if you opt out.
Composition vs regular
| Item | Composition | Regular |
|---|---|---|
| Return | GSTR-4 quarterly | GSTR-1 + 3B |
| ITC | Not allowed | Allowed |
| Turnover cap | ₹1.5 cr goods | No composition cap |
| Tax rate | 1–6% fixed | 18% standard |
| B2B invoices | Cannot issue tax invoice | Full GST invoice |
GSTR-4 sequence
CMP-08
Pay quarterly tax.
GSTR-4
File within due date.
Annual GSTR-4
FY summary return.
Exit check
If turnover crosses cap.
Switch scheme
File regular from next quarter.
Flow
GSTR-4 kit
- GSTIN.
- Turnover register.
- CMP-08 challan.
- GSTR-4 ACK.
- Bank stmt.
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B2B buyers
Composition dealers cannot issue GST tax invoices — B2B buyers lose ITC, limiting your customer base.
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0 of 4 checked
Freelancer IT?
Service composition cap ₹50 lakh — verify current notification.
Inter-state supply?
Composition generally restricted — check eligibility.
Late fee?
Per day late fee on GSTR-4 — file CMP-08 first.
Exit composition?
File intimation on portal before FY quarter.
vs QRMP?
QRMP is regular scheme quarterly — not composition.
Nil turnover?
Still file GSTR-4 — do not let GSTIN lapse.
Your tax year is already running.
RNOR status, exit timing, and DTAA benefits all depend on decisions you make before you land. Don't guess.