CMP-08 in GST: A Complete Guide for Composition Taxpayers

The Goods and Services Tax (GST) in India has a composition scheme that simplifies tax compliance for small businesses. One of the key requirements for taxpayers under this scheme is filing CMP-08. In this blog, we will discuss the purpose, eligibility, due dates, penalties, and filing process for CMP-08 in GST.

What is CMP-08 in GST?

CMP-08 is a quarterly statement-cum-challan that composition taxpayers must file to declare their tax liability and make payments to the government. It replaces the earlier GSTR-4 quarterly return. The CMP-08 form ensures that small businesses can comply with GST regulations without dealing with complex return filings.

Who Should File CMP-08?

CMP-08 is mandatory for taxpayers registered under the composition scheme, including:

● Manufacturers and traders with an annual turnover of up to 1.5 crore (75 lakh for ₹₹ select states).

● Service providers with an annual turnover of up to 50 lakh under the special ₹ composition scheme.

● Restaurants (excluding those serving alcohol) opting for the composition scheme.

Due Dates for CMP-08 Filing

CMP-08 must be filed quarterly, with the due dates being:

● For April - June: 18th July

● For July - September: 18th October

● For October - December: 18th January

● For January - March: 18th April

Failing to file CMP-08 on time can lead to penalties and interest charges.

Penalty for Late Filing

If a taxpayer does not file CMP-08 within the due date, the following penalties apply:

● Late fee of 200 per day (100 CGST + 100 SGST) until the filing is done.

● Interest at 18% per annum on the outstanding tax amount.

How to File CMP-08?

Filing CMP-08 is a simple process that can be completed through the GST portal. Follow these steps:

1. Login to the GST Portal: Visit www.gst.gov.in and log in with your credentials.

2. Navigate to CMP-08 Form: Under the ‘Services’ tab, select ‘Returns’ and then ‘File Returns.’ Choose the relevant financial year and quarter.

3. Enter Tax Liability Details: Fill in the taxable turnover and applicable tax amount for the quarter.

4. Pay Tax: Make the tax payment through net banking, NEFT, RTGS, or other available modes.

5. Submit and File: Verify the details and file the return using a Digital Signature Certificate (DSC) or Electronic Verification Code (EVC).

Key Points to Remember

● CMP-08 does not allow Input Tax Credit (ITC) claims.

● Composition taxpayers must file annual GSTR-4 in addition to quarterly CMP-08.

● If no sales or purchases were made in the quarter, a NIL CMP-08 must be filed.

● Composition taxpayers cannot issue tax invoices but must mention ‘composition taxable person’ on bills.

Conclusion

CMP-08 is an essential compliance requirement for businesses under the GST composition scheme. Filing it on time helps avoid penalties and ensures smooth business operations. If you are a composition taxpayer, make sure to keep track of due dates and follow the filing process carefully.

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