CMP-08 Return Filing for Composite Taxpayers

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CMP-08- The CBDT has listed all taxpayers having GST Registration who pay tax following section 10 of the CGST Act 2017 or who receive benefits from Notification No. 2/2019-Central Tax (Rate) issued on 07th March 2019 as a “special category of persons”. The CBDT has established a specific method for these kinds of people for GST Return Filing. In this article, you’ll about CMP-08 Return Filing.

What is CMP-08?

The GST form CMP-08 is a declaration that states the facts or a statement, by taxpayers enrolled in the GST composition scheme as composition merchants, of the self-assessed tax payable for the quarter. This declaration is used to deposit a composition dealer’s tax each quarter.

A business dealer must file the yearly reports on GSTR-4 as well as submit the GST CMP 08. Anyone with an annual turnover that fits the standards of the GST system could opt to become a composite company.

This was developed to ensure that the return and tax payment for small taxpayers having GST registration will be less burdensome. Therefore, by filing an application for the Form GST CMP-02, a typical taxpayer registered under GST can choose a composition scheme. In addition, taxpayers who would like to migrate from the old legislation to the new legislation under GST can choose a compensation levy through GST CMP-01. For a new applicant, he might choose a composition levy in the GST REG-01 form.

Closing Date of CMP 08

The GST form CMP-08 must be filed quarterly by a composite dealer. The GST Return Filing date is the 18th of next month, starting at quarter-end. It applies to the 2019-20 fiscal year. The due dates for the financial year 2019-20 are:

Period Closing Date
Oct-Dec 2020 18th January 2021
Jan-Mar 2021 18th April 2021
Apr-Jun 2021 18th July 2021
Jul-Sept 2021 18th Oct 2021

Who is eligible to file CMP-08?

The CMP-08 shall be utilized by a taxpayer having GST registration choosing a composition plan for deposit payments every 4 months. Two types of contributions can be registered in the CMP-02 (opt for composition scheme):

If the provider of products being manufacturers, in the preceding financial year merchants with an annual total turnover of up to Rs 1.5 crore, with exception:

  •       Ice cream, pan masala, and tobacco manufacturers.
  •       Manufacturers of interstate commodities.
  •       A non-resident taxable individual or a casual taxable entity.
  •       Organizations that sell their products through an e-commerce platform.

In addition, GST must be paid by a composition dealer at a specified turnover rate and the GST Return Filing annually in GSTR-4 form. These requirements are as amended by the 32nd meeting of the GST Council under the criteria of the Composition Scheme.

A composition dealer would have to pay tax every quarter and file a Quarterly Return on the form GSTR-4 before such modifications.

Late Fee and Interest of CMP-08

Under section 47 of the CGST Act, 2017, a person having GST registration who does not file returns on or before the date of due payment shall, for each continued failure, pay a late penalty of Rs. 100 per day.

As a result, the total cost of being late would be Rs. 200 every day. However, the late fee cannot surpass Rs. 5,000. In addition, together with the late charge, each taxpayer having GST registration shall, if he fails to make the tax payment on or before the deadline, pay an interest of 18 percent annually. The amount of tax payable by the registered individual calculates the interest.

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How to use the GST portal to file a CMP-08?

To file GST CMP 08 (self-assessed tax payment) via the GST portal, follow the steps below:

Step 1: Go to the GST portal and look for the CMP 08 tile on the screen.

Choose the appropriate financial year and the suitable quarter’s GST Return Filing period. Now click on the ‘SEARCH’ button to continue and go to ‘PREPARE ONLINE’ to access the CMP-08 form.

Step 2: Complete table 3 of the CMP-08 form with information about the tax liability.

For three months, fill in the summary statistics for the value of supplies and tax due. If the CMP 08 is not received before the due date, add the interest amount. Check the box next to ‘File Nil GST CMP-08′ if the taxpayer:

  1.     Does not have any external supply and so there is no tax payable during the specified return period.
  2.     Is not responsible for the output tax due to the absence of an inland provision that demands a reverse charge (including import of services).
  3.     does not have any other tax liability.

For the information entered, click on the “SAVE” button.

Step 3: Before paying the tax, look over the draft CMP-08.

To double-check the accuracy of the information provided, click on ‘PREVIEW DRAFT GST CMP-08’.

Step 4: Pay the responsibility and submit the CMP-08 form.

Pay either by utilizing the cash balance remaining in the electronic cash directory or by clicking on “Create Challan” to choose NetBanking or NEFT if the cash ledger is inadequate. Verify the accuracy of the declaration provided by ticking the box. Submit the CMP 08 utilizing the digital EVC or CMP-08 signature (DSC).

Verification of the submission of CMP 08 will be given with a notification. On successful CMP-08 GST return filing, GSTN will generate an ARN. In addition, an SMS and an e-mail are delivered to the taxpayer on their cell phone and email ID.

Consequences of non-filing of Form GST CMP-08

If the supplier does not pay the compensation specified in GST CMP-08, it shall pay INR 200/day penalty/late charge [INR 100 per day CGST + INR 100 per day SGST], from the given deadline on which returns are submitted to the exact GST Return Filing date. The maximum penalty/deadline cost would nonetheless be INR 5,000.

GSTR-1 Return Filing – What is GSTR 1 & How to File GSTR-1?

Moreover, If you want any other guidance relating to GST Registration, please feel free to talk to our business advisors at 8881-069-069.

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