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For small businesses and taxpayers under the GST Composition Scheme, compliance with tax regulations is important. One of the most important forms in this scheme is Form CMP-08, which helps businesses pay their tax dues and file returns quarterly.
If you are a small business owner, retailer, or service provider opting for lower GST rates under the Composition Scheme, understanding Form CMP-08 is essential. This guide simplifies everything you need to know about Form CMP-08, its purpose, filing process, due dates, penalties, and common mistakes to avoid.
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What is Form CMP-08?
Form CMP-08 is a crucial quarterly statement-cum-challan designed specifically for composition taxpayers under the Goods and Services Tax (GST) regime. This form plays a dual role, serving both as a tax payment form and a return filing document. Composition dealers use CMP-08 to declare their tax liability and make GST payments to the government in a simplified manner. Unlike regular taxpayers, composition scheme participants do not have to file multiple returns; instead, they submit CMP-08 every quarter to report their turnover and pay the applicable GST.
Additionally, this form ensures that composition taxpayers remain compliant with GST regulations while benefiting from lower tax rates and minimal paperwork. By streamlining tax payment and return filing into a single process, CMP-08 simplifies GST compliance for small businesses and traders operating under the composition scheme.
Who Should File Form CMP-08?
Businesses registered under the GST Composition Scheme must file Form CMP-08. This includes:
- Manufacturers & traders with an annual turnover up to ₹1.5 crores
- Restaurants (excluding alcohol sales)
- Service providers & mixed suppliers with an annual turnover up to ₹50 lakhs
- An individual engaged in inter-state supply of goods.
- A supplier dealing in goods that are exempt or not covered under GST regulations.
- A casual taxable person or a non-resident taxable entity.
- Businesses that sell goods through e-commerce platforms.
- Service providers who meet the criteria specified in Notification No. 2/2019 Central Tax (Rate), issued on March 7, 2019, with a total annual turnover of up to ₹50 lakh in the previous financial year.
Why is Form CMP-08 Important?
Filing Form CMP-08 ensures compliance with GST regulations and helps businesses avoid penalties. Some key reasons why this form is important:
- Mandatory for composition taxpayers – Filing is required even if there’s no business activity in a quarter.
- Simplifies tax payments – Instead of monthly returns, composition taxpayers file just four times a year.
- Avoids penalties – Late filing results in hefty penalties and interest charges.
- Ensures hassle-free business operations – Filing CMP-08 keeps your GST registration active and compliant.
How to File Form CMP-08?
Filing Form CMP-08 is an easy online process through the GST portal. Follow these step-by-step instructions:
Step 1: Login to the GST Portal
- Visit www.gst.gov.in
- Enter your GSTIN, username, and password
- Click on ‘Services’ → ‘Returns’ → ‘File Returns’
Step 2: Select the Tax Period
- Choose the relevant financial year and quarter
- Click on ‘CMP-08’ to proceed
Step 3: Enter Tax Details
- Report total sales (turnover) for the quarter
- The system auto-calculates the tax liability based on the composition tax rate
- Ensure accurate CGST, SGST, and IGST values
Step 4: Verify & Submit
- Review the auto-populated tax amounts
- Click on ‘Proceed to Payment’
- Make the tax payment via Net Banking, Credit/Debit Card, or UPI
Step 5: File with DSC or EVC
- Use a Digital Signature Certificate (DSC) or Electronic Verification Code (EVC) to complete filing
- Download the acknowledgment receipt for records
Due Dates for Filing Form CMP-08
Form CMP-08 is due every quarter. Below is the deadline schedule:
| Quarter |
Due Date |
| April - June |
18th July |
| July - September |
18th October |
| October - December |
18th January |
| January - March |
18th April |
Important: Missing the deadline results in penalties and interest charges, so always file on time.
Penalties for Late Filing of CMP-08
Failure to file Form CMP-08 on time can lead to:
Late Fees: ₹200 per day (₹100 for CGST + ₹100 for SGST) up to a maximum of ₹5,000.
Interest Charges: 18% per annum on outstanding tax liability.
To avoid these penalties, ensure timely filing each quarter.
Tax Rates Under Composition Scheme
Taxpayers filing Form CMP-08 pay GST at lower rates compared to regular taxpayers. The applicable tax rates are:
| Category |
GST Rate |
| Manufacturers & Traders |
1% (0.5% CGST + 0.5% SGST) |
| Restaurants (No Alcohol) |
5% (2.5% CGST + 2.5% SGST) |
| Service Providers |
6% (3% CGST + 3% SGST) |
Note: Composition taxpayers cannot charge GST separately on invoices; they must pay it from their own profit margins.
Common Mistakes to Avoid While Filing CMP-08
Many businesses make errors while filing CMP-08, leading to tax compliance issues. Avoid these mistakes:
- Incorrect Turnover Details: Ensure sales figures match your books of accounts.
- Late Filing: Always file before the 18th of the month following the quarter to avoid penalties.
- Ignoring Nil Returns: Even if there’s no sales activity, you must file a Nil CMP-08.
- Incorrect Tax Payment: Double-check tax rates applicable to your business type.
- Skipping Acknowledgment Receipt: Keep a copy of the filing receipt for future reference.
Conclusion
Form CMP-08 is an important compliance requirement for businesses registered under the GST Composition Scheme. Timely filing helps businesses avoid penalties, maintain compliance, and take advantage of lower tax rates and simplified GST procedures. To ensure a smooth filing process, it is essential to keep accurate turnover records, file before the due date each quarter, and use the correct tax rate applicable to your business.
By following this guide, businesses can effortlessly file CMP-08 and remain compliant with GST regulations in India. For any uncertainties or complexities, consulting a GST expert or chartered accountant is always advisable to ensure error-free filings.
