GST Composition Scheme – Form CMP-08

Introduction

Form CMP-08 is a crucial quarterly return for taxpayers under the GST Composition Scheme. Introduced from the fiscal year 2019-2020, this form simplifies tax compliance for small businesses by allowing them to declare and pay a fixed percentage of their turnover as tax. The Composition Scheme is designed to reduce the compliance burden, enabling businesses to concentrate on their core operations instead of the complexities of regular GST filings.

What is Form CMP-08?

Form GST CMP-08 is a quarterly return designed for taxpayers registered under the GST Composition Scheme. It allows these taxpayers, referred to as “specified persons,” to declare their self-assessed tax liability for the quarter. The form functions both as a statement of liability and a payment challan.

In addition to CMP-08, composition taxpayers are required to file an annual return using Form GSTR-4 by April 30 following the end of the fiscal year.

CMP-08 Full Form

CMP-08 stands for Composition Levy Statement-cum-Challan.

Who Should File GST CMP-08?

Eligible taxpayers under the GST Composition Scheme generally include small businesses paying a fixed percentage of their turnover as GST. They fall into two main categories:

1. Supplier of Goods

Eligibility:

Manufacturers and retailers with annual turnover up to Rs. 1.5 crore (or Rs. 75 lakh in special category states, excluding Jammu & Kashmir and Uttarakhand).

Exclusions:

Manufacturers of products such as ice cream, edible ice, pan masala, tobacco, or tobacco substitutes.
Businesses making inter-state supplies.
Suppliers of non-taxable goods.
Casual or non-resident taxable persons.
Businesses supplying goods through e-commerce operators.

2. Supplier of Services

Eligibility:

Service providers with annual turnover up to Rs. 50 lakh in the previous financial year, as per Notification No. 2/2019-Central Tax (Rate) dated 7 March 2019.

All eligible taxpayers must file CMP-08 quarterly to report and pay GST based on self-assessed turnover.

GST CMP-08 Due Dates (FY 2024-25)

Quarter	Period	Due Date
1st Quarter	Apr – Jun 2024	18th July 2024
2nd Quarter	Jul – Sep 2024	18th Oct 2024
3rd Quarter	Oct – Dec 2024	18th Jan 2025
4th Quarter	Jan – Mar 2025	18th Apr 2025

Penalty for Late Filing of CMP-08

Late fee: Rs. 200 per day (Rs. 100 under CGST + Rs. 100 under SGST).
IGST: Rs. 200 per day.
Maximum fee: Rs. 5,000.
Repeated non-filing: Failure to file CMP-08 for two consecutive quarters blocks e-way bill generation.
- To unblock, taxpayers must submit Form GST EWB-05 and may need to file pending returns.

Consequences of Repeated Non-Filing

If a taxpayer fails to file CMP-08 for two consecutive quarters, their e-way bill generation will be blocked.

To restore e-way bill functionality, the taxpayer must:

Submit Form GST EWB-05 to their jurisdictional tax officer.
Ensure that all pending CMP-08 returns for previous quarters are filed to clear any outstanding penalties.

Key Information Required for Filing Form CMP-08

Taxpayers registered under the GST Composition Scheme must provide the following details to complete Form CMP-08:

GSTIN Details: Enter the Goods and Services Tax Identification Number (GSTIN).
Legal and Trade Name: These fields are auto-populated based on the GSTIN and include the business’s registered legal name and trade name, if applicable.
Summary of Self-Assessed Tax Liability:
- Outward Supplies: Details of taxable sales made during the quarter.
- Inward Supplies on Reverse Charge: Details of purchases subject to reverse charge.
- Imports: Information on imported goods and/or services, if applicable.
- Tax Payable: Total tax due for the quarter.
- Interest: Any interest payable for late payments or defaults.
ARN and Date of Filing: After payment, the Application Reference Number (ARN) and date of filing are generated and should be recorded.
Verification: Confirm that all information is accurate and sign the form to complete the filing.
Filing ‘NIL’ Returns: If there is no tax liability for the quarter, a ‘NIL’ return can be filed, even via SMS, simplifying the process for businesses with no taxable transactions.

How to File GST CMP-08

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

Step 1: Access Form CMP-08

Log in to the GST portal.
Go to the Return Dashboard and click on the CMP-08 tile.
Select the financial year and the quarter for filing.
Click SEARCH, then choose PREPARE ONLINE to open the form.

Step 2: Enter Tax Liability Details

In Table 3, enter the summary of supplies and tax payable for the quarter.
Include any interest due for late submissions.
If applicable, check ‘File Nil GST CMP-08’ when:
- There are no outward supplies.
- There is no tax liability on inward supplies under reverse charge.
- No other tax is payable.
Click SAVE to store the details.

Step 3: Review the Form

Click PREVIEW DRAFT GST CMP-08 to verify that all information is accurate.

Step 4: Make Payment and File

Pay the tax using your electronic cash ledger or create a challan for payment via NetBanking or NEFT if funds are insufficient.
Confirm the submission by accepting the declaration, then submit the form using EVC or DSC.
After successful filing, an Acknowledgement Reference Number (ARN) is generated, and a confirmation will be sent via SMS and email.

About the Author

Ravi

Ravi is an expert legal writer who simplifies complex laws into clear, actionable guidance. He supports entrepreneurs in understanding and managing their legal obligations, empowering them to build compliant, confident, and sustainable businesses.