Form CMP-08

In effort to make compliance easier for composition dealers, new tax payment procedure was established in April 2019. In April 2019, Form CMP-08 was introduced & became effective for 2019–2020 fiscal year. It takes place of quarterly GSTR-4 that composition dealers used to file.

What Is Form CMP-08?

A composition dealer will report specifics or summary of their self-assessed tax payable for certain quarter using Form CMP-08, special statement-cum-challan. It also serves as reminder to pay taxes. 

A trader who has registered under composition scheme established for supply of goods as well as services is known as composition dealer. composition dealer must file his or her annual return using updated Form GSTR-4 format by April 30 of year after end of fiscal year, in addition to Form CMP-08.
 

Who Needs To File CMP-8 Form?

If taxpayer has chosen composition scheme, they must submit CMP-08 in order to deposit money on quarterly basis. Taxpayers who have registered under CMP-02 (Opt into Composition program) fall into two categories:
Manufacturers & retailers with annual sales of up to  ₹  1.5 crore ( ₹  75 lakhs for special category states, excluding Jammu & Kashmir & Uttarakhand) in preceding fiscal year are eligible to supply goods, with following exceptions: -

Manufacturers of ice cream & other edible ice (whether or not they contain cocoa), pan masala, tobacco, & manufactured tobacco substitutes.

• An individual who supplies states with goods.
• An individual providing commodities that are exempt from GST law taxes.
• A non-resident taxable person or casual taxable person.
• Companies that provide things via online retailer.
• Service providers who meet requirements outlined in Notification Number 2/2019 Central Tax (Rate), dated March 7, 2019, & whose combined yearly revenue exceeded  ₹  50 lakh in preceding fiscal year.
   

What Information Is Required To Complete Form CMP-08?

• Overview of outgoing & inward supplies that are subject to reverse charges & tax liabilities; 
• Information on interstate supply made to UIN holders, 
• Cmposition taxable individuals, & unregistered individuals; 
• In addition, information about available ITC, 
• Reversible ITC,
• available net ITC, 
• ineligible ITC, etc.
• A synopsis of exempt, zero, & non-GST inward supply details Information about interest & late fees Likewise, information on tax, interest, & late fees (if applicable) payments Furthermore, details on TDS/TCS credit

How To Fill Out Form CMP-08?

Four main sections of Form CMP-08 are as follows: Part 3 is most important section, where taxpayer must fill in information on Outward supplies, Inward supplies, & Tax paid. 

Part 1: taxpayer must choose appropriate fiscal year & quarter in which to file return in this section. GSTIN will automatically fill in.

Part 2: This section contains all legal information, including taxpayer's trade name, ARN, & filing date. These particulars are also automatically filled in.

Part 3: Facts & summary of self-assessed tax liability are contained in Part 3. taxpayer is required to furnish entire taxable value & tax that is payable under different tax heads, such as IGST, CGST, SGST/UT, & cess. Here, let's clarify each section:

1. After adjusting for amendments, outbound supply must be recorded, netting off advances & debit/credit notes.
2. second clause needs to be expanded to include imports of services as well as inward supplies that are subject to reverse charge. It is also specified that taxpayer is liable for inward supplies.
3. third section's unpaid tax will automatically be filled in.
4. fourth part requires amount of interest payable to be revised in event that return is filed late or taxes are not paid on time.
5. And information is automatically filled in here in final part, Tax & Interest Paid, which includes information on cash payment amount. full payment must be made in cash because GST CMP-08 is not eligible to get ITC.

Part 4: Taxpayer must confirm that all of information is accurate & true in this section, which is verification section. Additionally, final authorized signatory signature is needed.
 

What Is CMP 08 Due Date of Filing Form?

Update: July 7, 2020 is new deadline for submitting CMP 08 for quarter ending in January–March 2020.A composite dealer must file Form CMP-08, quarterly return form, by 18th day of month that follows relevant quarter. Still,

• Deadline for submitting Form CMP 08 for April–June 2019 quarter  
• Extended to July 31, 2019, via July 18, 2019 Dated July 18, 2019, GST Notification No. 34/2019-Central Tax. This was further prolonged until August 31, 2019 via Central Tax GST Notification No. 35/2019, dated July 29, 2019.- deadline for submitting Form CMP-08 for July–September 2019 quarter.
• Extended via video from October 18, 2019, to October 22, 2019. deadlines for submitting Form CMP-08 for quarters of October 2019 to December 2019 & January 18th, 2020 are set forth in GST Notification No. 50/2019-Central Tax, issued July 18, 2019. 
• Extended till July 7, 2020, from April 18, 2020, via deadline for submitting form CMP 08 for quarter ending on April 30, 2020, to June 30, 2020, & July 31, 2020, for quarter ending on July 31, 2020, & September 30, 2020, is April 3, 2020, according to GST Notification No. 34/2020-Central Tax, issued April 3, 2020.
   

Format Of CMP-08 Form

Form CMP  08 filing is special statement-cum-challan used by composition dealers to declare details or summary of their self-assessed tax payable for given quarter. It also serves as challan for making tax payments. form has four major parts:

1. GSTIN or GST Number: In first part, composition scheme holder fills in their GSTIN or GST Number.
2. Auto-Filled Legal Details: legal name & trade name are auto-filled.
3. Self-Assessed Liability: third part requires composition dealer to furnish their self-assessed tax liability.
4. Verification: final part involves verification & submission of form.

Composition dealers must file Form CMP 08 on quarterly basis, with due date being 18th of month following quarter. Late filing attracts penalty of  ₹  200 per day under CGST & SGST, up to maximum of  ₹  5,000.

What Are Consequences For Not Filing CMP-08 Form Within Prescribed Due Date?

If taxpayer does not provide their statement by deadline, they will be charged late fee of ₹200 per day for each day that they are late. that is, ₹100 under CGST & Rs. 100 under SGST each day. IGST Act specifies sum of ₹200 each day of delay, which is equal to late fines under CGST & SGST Acts. maximum of ₹5,000 in late fees will be assessed between commencement of due date & taxpayer's actual filing date. 

Moreover, e-way bill production is prevented if CMP-08 for two consecutive quarters is not filed. Taxpayers must submit Form GST EWB 05 to jurisdictional tax authority in order to request unblocking. They might also have to submit all unfiled forms from earlier quarters.
 

Conclusion

Filing GST CMP-08 return is crucial for GST compliance. CMP-08 filing involves submitting GST Form by GST taxpayers who are composition dealers. These dealers need to file their GST returns to report their tax liability. Using GST portal, they can complete this simplified return process. GST composition levy has specific compliance requirements, & it's essential to adhere to GST return due date to avoid penalties.