Form CMP-08 Guide: GST Composition Scheme Filing

Introduction

Form CMP-08 is a key quarterly return for small businesses under the GST Composition Scheme in India. It helps simplify tax compliance by allowing eligible taxpayers to declare and pay their self-assessed tax liability every quarter. Introduced in April 2019, Form CMP-08 replaced the older GSTR-4, making the process easier for small businesses with turnover up to Rs. 1.5 crore for goods or Rs. 50 lakh for services. In this guide, we’ll walk you through what Form CMP-08 is, who needs to file it, how to file it, and more, based on the latest information as of June 2025.

What is Form CMP-08 and Its Purpose?

Form CMP-08, also known as the Composition Levy Statement-cum-Challan, is a quarterly statement for taxpayers under the GST Composition Scheme. It’s designed to help small businesses declare their tax liability and make payments without the hassle of complex GST filings. Introduced via Notification No. 20/2019 on 23rd April 2019, it replaced the quarterly GSTR-4 from FY 2019-2020.

• Purpose: Declare self-assessed tax liability and pay taxes for each quarter.
• Benefits: Simplifies compliance, reduces paperwork, and lowers tax rates (e.g., 1% for goods, 0.5% for services).

For example, a small retailer in Kolkata with a Rs. 1 crore turnover can use Form CMP-08 to pay 1% tax quarterly, avoiding monthly GST filings.

Who Needs to File Form CMP-08?

Form CMP-08 is mandatory for businesses registered under the GST Composition Scheme. Here’s who qualifies:

• Goods Suppliers: Businesses with annual turnover up to Rs. 1.5 crore (Rs. 75 lakh in special category states, except J&K and Uttarakhand).
• Service Providers: Turnover up to Rs. 50 lakh, as per Notification No. 2/2019 dated 7th March 2019.
• Exclusions:
  • Inter-state suppliers.
  • E-commerce operators, casual taxable persons, and non-resident taxpayers.
  • Suppliers of non-taxable goods like alcohol or tobacco.

Example: A local restaurant in West Bengal with a Rs. 40 lakh turnover can opt for the scheme and file Form CMP 08, but a business selling across states cannot.

Due Dates and Penalties for Form CMP 08

Filing Form CMP-08 on time is crucial to avoid penalties. The due date is the 18th of the month following each quarter. For FY 2024-2025, the schedule is:

• Late Filing Penalty: Rs. 200/day (Rs. 100 CGST + Rs. 100 SGST), up to a maximum of Rs. 5,000.
• Non-Filing Consequence: Missing two consecutive quarters blocks e-way bill generation, requiring Form GST EWB 05 to unblock.

Example: If you miss the 18th July 2024 deadline for Q1, you’ll pay Rs. 200/day until filing, capped at Rs. 5,000.

How to File Form CMP 08 Online

Filing Form CMP-08 is a simple process on the GST portal. Follow these steps:

1. Log into GST Portal: Visit www.gst.gov.in, log in, and go to Services > Returns > Returns Dashboard.
2. Select CMP-08: Choose the financial year and quarter, click the CMP-08 tile, and select “Prepare Online.”
3. Enter Details: Fill in Table 3 with:
   • Outward supplies details.
   • Inward supplies under reverse charge.
   • Tax payable, including CGST, SGST, and IGST.
4. Make Payment: Pay the tax using the electronic cash ledger or NEFT. Ensure sufficient balance.
5. Submit Form: Preview the form, select the authorized signatory, and submit using EVC (OTP) or DSC. Note the ARN for reference.

• NIL Returns: If no liability (e.g., no supplies), file a NIL return via SMS for convenience.

Example: A trader with Rs. 10 lakh quarterly turnover pays 1% tax (Rs. 10,000) via Form CMP-08, submitting it by 18th October for Q2.

Benefits and Limitations of Form CMP-08

The GST Composition Scheme, supported by Form CMP-08, offers several advantages:

• Easy Compliance: Quarterly filing reduces paperwork compared to monthly returns.
• Low Tax Rates: Fixed rates (e.g., 1% for goods, 0.5% for services) simplify tax calculations.
• No Detailed Records: Minimal record-keeping requirements save time.

Limitations:

• No Input Tax Credit, increasing costs.
• No inter-state supplies, limiting business scope.
• Ineligible for e-commerce or non-taxable goods like alcohol.

FAQs

1. What is Form CMP-08?
   Form CMP-08 is a quarterly return for GST Composition Scheme taxpayers to declare and pay self-assessed tax liability, effective from FY 2019-2020.
2. Who is eligible to file Form CMP-08?
   Businesses with turnover up to Rs. 1.5 crore (goods) or Rs. 50 lakh (services), excluding inter-state suppliers and e-commerce operators, under the Composition Scheme.
3. When is Form CMP-08 due?
   It’s due on the 18th of the month after each quarter, e.g., 18th July for April–June, as per FY 2024-2025.
4. What happens if I miss the Form CMP-08 deadline?
   You’ll face a Rs. 200/day penalty (max Rs. 5,000), and missing two quarters blocks e-way bill generation.
5. Can I file a NIL Form CMP-08 return?
   Yes, if you have no tax liability, you can file a NIL return via SMS on the GST portal.

Conclusion

Form CMP-08 is a lifeline for small businesses under the GST Composition Scheme, simplifying tax compliance with quarterly filings. By understanding eligibility, due dates, and the filing process, you can stay compliant and avoid penalties. Use the GST portal for easy filing, and consider platforms like IndiaFilings for expert support. File your Form CMP-08 on time, leverage the scheme’s benefits, and keep your business running smoothly with minimal tax hassles.