Form CMP-08 Explained: GST Return for Composition Dealers

It may often feel overwhelming to stay compliant with GST, especially for small business owners. The Composition Scheme was introduced to make things easier, and with it came simplified forms like CMP-08. If you are a part of the Composition Scheme or thinking about opting in, you have to understand that this form is key to smooth and hassle-free compliance. In this article, you will learn what exactly CMP-08 is, how to File Form CMP-08, and why it is important.

What is Form CMP-08?

Under GST, CMP-08 is fully known as Composition Levy Statement-cum-Challan. A quarterly return form called Form GST CMP-08 is used by small taxpayers who have chosen to participate in the GST Composition Scheme. These taxpayers are not required to file monthly GST returns like regular taxpayers. Instead, they can use Form CMP-08 to report their total sales and pay tax every quarter.

This form acts as both:

• A statement outlining the dealer's quarterly tax liability.
• A challan to make the tax payment to the government.

In addition, taxpayers who utilize Form CMP-08 are required to submit an annual return using Form GSTR-4 once a year. The due date for GSTR-4 is April 30, following the end of the financial year.

• Form CMP-08 is a simple way for small businesses under the composition scheme to stay compliant with GST rules without dealing with complex filings.

Who Should File CMP-08?

CMP-08 must be filed by the taxpayers who have opted for the GST Composition Scheme using Form CMP-02. These taxpayers need to deposit their tax dues every quarter through this form.

The categories of taxpayers who are eligible to file CMP-08 are mentioned below:

1. Suppliers of goods:

This category belongs to those like manufacturers or retailers whose turnover was up to Rs. 1.5 crore in the previous financial year. However, some are not eligible for this criterion; those are mentioned below:

• Producers of pan masala, ice cream, or tobacco goods.
• Those making interstate supplies.
• Casual or non-resident taxable persons.
• Businesses that supply goods through e-commerce platforms.
• Persons who deal in goods not covered under GST.

2. Service providers:

This category is for those who meet the conditions under Notification No.2/2019, Central Tax (Rate) dated 7^th March 2019 and had a turnover of up to Rs.50 lakh in the previous financial year.

To disclose their tax liability and make the appropriate payment, these taxpayers are required to submit CMP-08 every quarter.

GST Form CMP-08 Due Date

Taxpayers who are registered under the GST Composition Scheme must file Form CMP-08 every quarter to report their self-assessed tax. This form must be submitted by the 18^th day of the month and follow the end of each quarter.

Here are the due dates for the financial year 2024-2025:

If you file on or before the due date, it helps you avoid late fees and keep the taxpayers compliant under GST.

Penalty for Late Filing of CMP-08

If a taxpayer does not file Form CMP-08 by the due date, a late fee will be charged. Until the form is turned in, this cost is computed daily.

Late Fee Amount

The late fee amount is Rs. 200 per day

1. Rs.100 under CGST.
2. Rs.100 under SGST.

• For IGST: The late fee is also Rs. 200 per day, as it follows the same rate as CGST and SGST.
• Maximum Late Fee: The total penalty is limited to Rs.5000 for each quarter.

It is important to file Form CMP-08 on time to avoid these extra charges and stay compliant with GST rules.

Consequences of Repeated Non-Filing of Form CMP-08

A taxpayer's access to the e-way bill generation system will be banned if they do not file Form CMP-08 for two consecutive quarters. This means they won’t be able to move goods using e-way bills, which can seriously affect business operations.

The taxpayer needs to do the following to unblock the e-way bill system:

• Use Form GST EWB-05 to submit an application to the jurisdictional tax officer.

• Submit any pending CMP-08 forms for earlier quarters, if required.

Regular filing of CMP-08 is important to avoid disruptions and penalties under GST.

Key Information Needed to File Form CMP-08

Taxpayers under the GST Composition Scheme must provide some important details while filing Form CMP-08. This is a basic summary of what is required:

• GSTIN (Goods and Services Tax Identification Number): First, you need to input your GSTIN.
• Legal and Trade Name: These will be auto-filled based on your GSTIN.
• Summary of Tax Liability:
  1. Outward Supplies: Report the sales you made during the quarter that are taxable.
  2. Inward Supplies under Reverse Charge: Mention purchases where you are liable to pay tax under reverse charge.
  3. Imports (if any): Include details of any imported goods or services.
  4. Tax Payable: Enter the total tax due on these supplies.
  5. Interest: If there was any delay in payment, include the interest amount.
• ARN and Filing Date: Once the form is submitted and tax is paid, an Application Reference Number (ARN) and filing date will be generated automatically.
• Verification: You need to confirm that all details are correct and complete the form with your signature.

Note: If you have no tax liability for the quarter, you can file a NIL return. This can even be done easily through SMS.

How to File Form CMP-08?

If you are a composition taxpayer under GST, here is how you can easily file Form CMP-08 to pay your self-assessed tax for the quarter.

Step 1: Open Form CMP-08

• Go to the official GST portal.
• Log in with your username and password.
• On the dashboard, click ‘Returns Dashboard’.
• Select the financial year and quarter.
• Click on ‘CMP-08’, then select ‘Prepare Online’.

Step 2: Fill in Tax Details

• In Table 3, enter the total value of your taxable outward supplies and the tax payable.
• If you are late, also include the interest amount.
• Select "File Nil GST CMP-08" if you have no business activity for the quarter.
• After entering the details, click ‘Save’.

Step 3: Review the Form

• Select "Preview Draft GST CMP-08" to verify your entries one more time.
• Make sure everything is correct before you submit.

Step 4: Make Payment and Submit

• If you have a balance in your electronic cash ledger, use it to pay the tax.
• If not, create a challan and pay via NetBanking or NEFT.
• Tick the declaration box and submit the form using Electronic Verification Code (EVC) or Digital Signature Certificate (DSC).

After Submission

• Once you file, you will get an Acknowledgement Reference Number (ARN).
• You will also receive a confirmation through SMS and email.

This process ensures that your tax is paid on time and you remain compliant with GST rules.

Conclusion

You learned how to file Form CMP-08 in detail. For taxpayers participating in the GST Composition Scheme, filing Form CMP-08 is essential to maintaining compliance and avoiding fines. Timely submission ensures smooth business operations without disruptions like e-way bill blocks.

If you need help with CMP-08 or any GST-related service, Online Legal India is here for you. We offer expert assistance in GST filing, GST registration, and compliance. Our professionals will assist you at every stage. Visit Online Legal India today.