Form CMP 08 for GST Composition Scheme

Form CMP 08 is a vital quarterly return form introduced for taxpayers who have opted into the GST Composition Scheme. Effective from the fiscal year 2019-2020 onwards, this form is designed to simplify the tax filing process for small businesses by allowing them to declare and pay a fixed percentage of their turnover as tax. The Composition Scheme aims to ease the compliance burden for these businesses, helping them focus more on their core activities rather than the complexities of regular GST filings. Get Expert Assistance for GST Return Filing and Form CMP-08 at IndiaFilings! [shortcode_14]

What is Form CMP-08?

Form GST CMP-08 is a specific return form designed for certain taxpayers, referred to as 'specified persons,' under the GST composition scheme. This form allows them to declare the summary or details of their self-assessed tax liability for each quarter. It serves as a statement and a payment challan for their quarterly tax obligations. In addition to Form GST CMP-08, these taxpayers must file annual returns using Form GSTR-4. This annual return must be submitted by April 30, following the end of the fiscal year.

CMP-08 Full Form

The full form of CMP-08 in the context of GST (Goods and Services Tax) is Composition Levy Statement-cum-Challan.

Who Should File GST CMP 08 Form?

Taxpayers who should file CMP-08 include those registered under the GST composition scheme, which is designated for specific types of small taxpayers to simplify their tax obligations by allowing them to pay a fixed percentage of their turnover as GST. These taxpayers are generally categorized into two groups based on the nature of their business and annual turnover:

Supplier of Goods

Eligible Businesses Manufacturers and retailers with an annual aggregate turnover of up to Rs. 1.5 crore (or Rs. 75 lakhs for special category states, excluding Jammu & Kashmir and Uttarakhand).

Exceptions: Manufacturers of certain products like ice cream, edible ice (with or without cocoa), pan masala, tobacco, and manufactured tobacco substitutes.

- Businesses making inter-state supplies.
- Suppliers dealing in goods not taxable under GST law.
- Casual taxable persons or non-resident taxable persons.
- Businesses supplying goods through e-commerce operators.

Supplier of Services

Eligibility: Service providers meet the criteria outlined in Notification Number 2/2019 Central Tax (Rate) dated 7 March 2019, with an annual aggregate turnover of up to Rs. 50 lakh in the previous financial year.

These taxpayers must file GST CMP 08 quarterly to report and pay their GST based on self-assessed turnover calculations.

GST CMP 08 Due Date

Taxpayers under the GST composition scheme must adhere to specific due dates for filing Form CMP-08. This form, which summarizes their self-assessed tax liability, must be submitted by the 18th day following the end of each quarter. Here are the due dates for the fiscal year 2024-2025:

Quarter	Due Date
1st Quarter: April to June 2024	18th July 2024
2nd Quarter: July to September 2024	18th October 2024
3rd Quarter: October to December 2024	18th January 2025
4th Quarter: January to March 2025	18th April 2025

Penalty for Late Filing of CMP 08

If a taxpayer fails to submit Form CMP-08 by the stipulated due date, they will incur the Penalty for Late Filing of CMP 08.

Penalty for Late Filing of CMP 08: A late fee of Rs. 200 per day of delay is imposed, which is split as Rs. 100 under CGST and Rs. 100 under SGST.
Penalty for Late Filing of CMP 08 under IGST: The same as CGST and SGST, amounting to Rs. 200 per day.
Maximum Late Fee: The Penalty for Late Filing of CMP 08 is capped at Rs. 5,000 from the start of the due date to the actual filing date.

Consequences of Repeated Non-Filing

Failing to file CMP-08 for two consecutive quarters results in blocking e-way bill generation.

To unblock the e-way bill generation, taxpayers must apply to their jurisdictional tax official using Form GST EWB 05.
Taxpayers may also need to file all pending forms for previous quarters to resolve the issue related to the Penalty for Late Filing of CMP 08.

Key Information Required for Filing Form CMP-08

To properly complete GST CMP 08, taxpayers registered under the GST composition scheme need to provide the following information:

GSTIN Details: The taxpayer must start by entering their Goods and Services Tax Identification Number (GSTIN).
Legal and Trade Name: These fields will be auto-populated based on the GSTIN provided. It includes the business's legal name as registered under GST and the trade name if applicable.
Summary of Self-Assessed Tax Liability
Outward Supplies: Details of outward supplies made during the quarter on which tax is payable.
Inward Supplies on Reverse Charge: Details of inward supplies on which tax is payable under the reverse charge mechanism.
Imports: Information on imported goods and/or services, if applicable.
Tax Payable: The total amount of tax payable on the above supplies.
Interest: Any interest due on late payments or other defaults during the quarter should also be reported.
ARN and Date of Filing: After the tax is paid, the Application Reference Number (ARN) and the date of filing will be generated, which should be noted in the form.

Verification: The taxpayer must verify all the details entered in the form are correct and sign off on the document to confirm accuracy and completion.

Form CMP 08 is attached here for reference:

Note:

Filing 'NIL' Returns: If there is no tax liability for the quarter, taxpayers can file a 'NIL' return. This can be done via SMS, making the process simpler for those with no taxable transactions to report.

How to File GST CMP 08?

How to file GST CMP 08 (payment of self-assessed tax) on the GST portal:

Step 1: Access the Form CMP 08

Log into the GST portal. Navigate to the Return Dashboard and click on the CMP-08 tile.
Select the relevant financial year and the filing period for the quarter.
Click ‘SEARCH’, then select ‘PREPARE ONLINE’ to complete the CMP-08 form.

Step 2: Enter Tax Liability Details

In Table 3 of the CMP-08 form, input the summary figures for the value of supplies and the tax payable for the three-month period.
Enter any interest due if the CMP-08 submission is delayed beyond the due date.
If applicable, select the ‘File Nil GST CMP-08’ checkbox if:
- There are no outward supplies and thus no tax payable.
- There is no output tax liability from inward supplies subject to reverse charge (including imported services).
- There are no other tax liabilities.
Click ‘SAVE’ to store the entered details.

Step 3: Review the Form

Click on ‘PREVIEW DRAFT GST CMP-08’ to check the accuracy of the information entered.

Step 4: Make Payment and File

Make the necessary payment using the balance in your electronic cash ledger or create a challan for payment via NetBanking or NEFT if the balance is insufficient.
Confirm the submission by agreeing to the declaration, then submit CMP-08 using an Electronic Verification Code (EVC) or Digital Signature Certificate (DSC).
Upon successful filing, an Acknowledgement Receipt Number (ARN) is generated, and you will receive a confirmation message. Notifications of the filing will also be sent via SMS and email to your registered contact details.

Conclusion

Form CMP-08 is an essential tool for taxpayers under the GST composition scheme, providing a streamlined method to report and pay GST based on a fixed percentage of turnover. It is vital for these taxpayers to adhere to the specific quarterly due dates to avoid penalties and ensure smooth financial operations. The structured filing process, including detailed steps on the GST portal, ensures transparency and ease in managing tax obligations. IndiaFilings Can Assist You with Filing GST Returns, including Form CMP-08.